Concerning the reverse splits Concerning the reverse splits: What is below is from the Proxy Statement (definitive) (def 14a)
“To authorize the Board of Directors of the Company to effect a reverse stock split of our outstanding common stock in a ratio of between one-for-five and one-for-ten, in their sole discretion, without further shareholder approval, at any time prior to the one year anniversary of this annual meeting; provided that all fractional shares as a result of the split shall be automatically rounded up to the next whole share. The Board of Directors recommends that the Stockholders vote "FOR" this proposal “
In effect, they may only do so withing one year of the subject annual meeting.
Many situations may occur within the one year period.
For instance a JV partnership might occur in which the partner pays a initial cash sum for the JV interest. If the JV partner or partners' were the large shareholders they would surrender their shares to EGZ and held in EGZ's Treasury for EGZ's – part of later JV development. In either case all the JV partner(s) including EGZ would then pay an amount to develop the mine, based on their JV interest.
In other words, all the JV partners including EGZ would be responsible for their part of present and future JV developments based on their percentage interests in the JV.
For instance the if JV was a 50/50 situation, EGZ costs of mine site development would be half of what it would have cost without the JV and likely have its income free of bank loans and other potential problems.
Considering Energizers proven and probable reserves plus the later conversion of the present measured and indicated resources to reserves their should be enough for everyone concerned.
In such a situation were to exist, a reasonable reverse split might not seem out of hand.