From Yahoo thread
reverse split in this annual rpt?
Saveourposition
Oct 1 1998
3:25AM EDT
I will have to verify but I keep looking at note 15a of the April 30, 1998 annualreport. Notice Rene keeps saying no reverse split. But wait! The stock has no par value.
Here is note 15a
During 1998 the companys directors and shareholders approved a reduction in the stated capital of the outstanding common shares and deficit of the Company by $39,262,299 representing the Companys deficit at April 30, 1997.
OK now take a sip of beer
Here is the Shareholders Equity portion of the Balance Sheet
1998 1997
Convertible Debentures (Note 14).........$614,900..............0
Share Capital (Note 15).............$52,200,031....$65,020,240
Deficit (Note 15)..................(20,485,710)...($39,262,299)
Now according to the note they took the $39,262,299 deficit from FY1997 and reduced share capital by this amount thus reducing both the FY98 Share Capital and Deficit. Had this not been done then Share Capital would be $91,462,330, and the Deficit would have been ($59,748,009).
Now accordingly a reverse split is where a corporation reduces the number of shares outstanding. So what did this transaction do????
(my opinions)
Take another sip of beer.
Note to self:
Call financial people and ask question about par value versus no par value.
Call Guido
Order Pizza
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