JTS- "A Nordic Drive in Every PC and laptop" Message Board

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Microcap & Penny Stocks : JTS- "A Nordic Drive in Every PC and laptop"

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To: George who wrote (1851)	5/13/1998 3:15:00 AM
From: ExtraBases	Read Replies (1) of 1985

George, <<< "wouldn't sustain the dilution" - what did you mean by that? >>> In the event that JTS were to do a reverse split, I believe that they would need to issue additional shares to raise the much needed capital until they could sustain profitability. (If only to satisfy the conversion of the Preferred.) Therefore, if they were to do a 1 for 20 reverse split, this would bring them to only @ 8.5 million shares outstanding. The stock price would then be @ $ 5 (well, this was when we were @ $ 0.25) and fulfill at least that portion of the AMEX listing requirement. In order to get adequate capital (say $ 15 - $ 25 million), this would require 35% - 60% additional shares to be issued (3 - 5 million shares added to just 8.5 million shares). This large amount of dilution in such short order would, IMO, quickly bring the stock price back below the AMEX requirement and to where we are today... looking at a possible reverse split.... Shareholders aren't to keen on reverse splits (especially multiple reverse splits...). We know now that's not the route JTS will take. My question is: Will we see any shares in the OTC listing? BTW, I received a return call from JTS just hours after leaving my latest message. Unfortunately, I wasn't available and was left a voice mail that reiterated the statements made in the PR. If this thinking is flawed in any manner, I am all ears... --Dennis

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