TSXV:CLAS.H - Post by User
Post by
whisky11on Apr 22, 2021 11:42am
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Post# 33044914
@Angelal. No no no no no, it was a misunderstanding
@Angelal. No no no no no, it was a misunderstandingIt's was my talk in general terms, some companies are not ready for NASDAQ they end up into deep problem, class action lawsuit included.
Guys here are talking about Claritas RS (reverse split) as possibility in near future.
They using it as a fear mongering and to justify stagnation in the stock price or even drop in SP.
I don't see why BoD would insist on RS without Claritas benefitting from it.
To present my opposite position I got to explain what happens to Company, let's say any company after RS
1-after reverse split instead of 10 $10 bills you have 1- $100 it's cosmetic usually stock price drop 5 to 20% recover it later but everybody hates it.
2-the company got group of institutional investors they demand stock price above one dollar, Company makes reverse split after that stock price goes 100% up in no time, everybody's happy
3-the company does 10 to 1 or 20 to1 reverse split to get to NASDAQ. Stock price reflected low value of the company, to begin with. If they mislead NASDAQ and investors, class action lawsuit or sometimes plenty of them hovering around the company.
So how you can see, I'm not talking about Claritas I'm talking in general terms about market forces and reverse split
4-the X company is already on NASDAQ stock price drops below one dollars threshold for I think longer than 30 days or maybe longer I can't remember now.
So then the company make a reverse split to artificially raise stock price.
Most of the time it doesn't work and the reason why it doesn't work is that they have wrong business model.
PS. I know my grammar sucks ,on the bright side, I had to live in many countries for a few years in each of them.So the same poor way I speak five languages, still not too bad.
Years ago my boss told me to move from Toronto and work for six months to Quebec, I asked him not to send me to Quebec because I don't speak French. He told me that it wasn't a problem I don't speak English either so why would be a problem which language I don't understand.