If a reverse split is done in an attempt to maintain listing and nothing else changes, a weak stock before a reverse split is still a weak stock afterwards--and will continue its previous slide. This reverse split was not done with listing in mind--although I'm sure getting small cap listing is very important to Bootes--the primary reason was to give JAB an ~88% ownership of BCMD stock. Assuming there were around 6,000,000+ shares presplit, there would now be 500,000 shares outstanding--with another 3,500,000 restricted shares issued to JAB. All these numbers are approximate.
I think this ridiculous spread is due to market makers playing games with a miniscule float. The float is far less than the 500,000--I don't believe many, if any, of those restricted shares issued circa Feb-Dec 97 were ever able to be sold. I know I had 1,000,000 shares before the 1-10 and 1-12 rev splits--that are now 8500 shares--and haven't been able to register them. Bond's threat of a lawsuit indicates his and his customers were never registered either, and I believe that the Sterling principals shares were never registered. Float might be only about 300,000. |
