jm, I agree with you. We all have to vote against proposal.
I think that I begin to understand hindsight of GATE's proposal. Unless significant efforts put from small investors, more likely the proposal will be passed, and correspondingly only reverse split of 1 for 10 will be performed. So, outstanding 41M common shares will become 4.1M shares. Existing preferred stocks will not be in reverse split, so that current 2M PS will be in size of about 50% of outstanding CS. The CS company owns, which I guess about 20M shares, is assumed for reverse split, but I am not 100% sure.
Anyway, PS company owns will dominate and it turns out that GATE owns most of portion of the company. If they need more shares, they could do whatever they want.
It is very sad. GATE has technology, but big investors ruin the company and suck most of small investors' money. Very unfortunate unless we all put efforts against it.
My assessment could be wrong, and hope I am wrong.
Good Luck |
