RBI Ventures Ltd. V.RBI.H

RTO

[rahtid]

With the consolidation request by the company, I would tend to think that something is already being set up because if they consolidate without a plan in place, then the share price will drop quickly.

[BigPop18]

It was also written: The proposed consolidation will not alter any present shareholders proportion of outstanding common shares. Management expects the companies share trading price will change to reflect the consolation ratio that is considered. Does this mean that if they do a 1:10 then the share price goes to .30 cents automatically? Then why would this be a negative thing. 6 of 1 , half a

[rahtid]

Yes the proportion doesn't change and the share price changes automatically. But there needs to be a reason to change the share total. With no current active business, the only reason is because there will be an increase in the total number of shares when an RTO happens. Investors generally don't like consolidation because if there is no excitement to buy in, the share price will have

[BigPop18]

Picking up on something that Rahtid said " but there needs to be a reason to change the share total. With no current active business, the only reason is because there will be an increase in the total number of shares when the RTO happens ". Ok: If this RTO involves a MJ producer this could be positive for us investors. Say this producer has issued shares to raise cash through a pp or

[rahtid]

Well BigPop that's the gamble with a shell or RTO. The main thing is (if it happens) it will be an established company already in business just looking to expand awareness as well as raising funds for expansion. It can work out really well, or be a slog for current investors. Two examples come quickly to mind: 2016 - Drone Delivery does an RTO with Asher Resources (granted not a shell at the