If reverse splits are so bad for shareholders, why would shareholders (Idanta, Actel, Siemens, etc.) propose a reverse split? Are there certain situations where a reverse split can be beneficial? Is timing relevant? If the company were about to announce some tremendous news (such as profits!!!) could this help justify a reverse split? Everyone EXCEPT Idanta, Actel, Siemens and management appear to be dead set against a reverse split.
Also, to all: Page 25, paragraph 1, lines 5 to 7 states:
"The Board of Directors has reserved the discretion to abandon the amendment set forth in this Proposal 5, as permitted under Section 242(c) of the Delaware General Corporation Law in the event that the Reverse Stock Split set forth in Proposal 4 is approved by the Stockholders."
and: Page 1, Item 5, lines 3 to 6 states:
"If the amendment set forth in Proposal 4 above and the amendment set forth in this Proposal 5 are both approved by the Stockholders, the Board of Directors intends to abandon the amendment set forth in this Proposal 5 as permitted by Section 242(c) of the Delaware General Corporation Law."
So you WON'T get both a reverse split AND an increase in authorized shares.
EZ |
