Aurcana Silver Corp V.AUN.H

reverse split thoughts fr. Stewart Thomson

[billioncubicft]

1. Alpha Minerals staged another big move higher yesterday. So far Alpha (formerly Eso) is a poster child for how a reverse split should function. Most reverse splits are engineered by scumbags to rip off shareholders.
2. Reverse splitting a stock without an accompanying meaningful transaction usually benefits management, but not shareholders. Some of them are outright frauds.
3. Air Canada and GM were two reverse split designed to ruin shareholders and enrich management. My view is management should have been arrested and charged with theft.
4. The ultimate reverse split scam is when the old stock is jettisoned, and the assets are rolled into a "newco". It's usually the corporate bond holders that get the newco stock, while the old stockholders to hold.. the bag.
5. Then the directors issue themselves giant bonuses for "saving" the company. Nice people, and a key reason why jails should exist.
6. Companies like Ontzinc, which became Hudbay, through a reverse split transaction, are models for the proper use of the reverse split tool.