Looming & credible riskAs i've been pretty open on my feelings & opinions on this company and its managment over the last few months, i just want to make another thing clear here. Now that everyting is out in the open & the company's shares in the literal gutter, there another potential problem creeping up on the horizon that many shareholders here are probably NOT aware. As many of you folks know or at least should know by now after the discussions that have taken place on this board, the company has been lurking about for about 1/4 century...........without having made ANY operational progress or brought ANY s/h value during that time. Imo, the only thing they've succeeded over that period was bloating share capital several times over & filing their pockets with lucrative options, warrants & salaries. And talking about bloating share capital, it brings me to the point i want to make here today.
As i speak, current fully diluted o/s are at about 200M, which is quite substantial for such a small company with no meaninfull assets or operations. Of course, this ISNT the first time the company has bloated share capital to these levels and you would know this if anyone has done some very simple DD. Some might think this isn't normal for a company to do this, but rest assured it is because this is infact the wild west of investing we call the venture exchanges in Canada........the TSX and all its risky highly specuaitve offshoots. On these exchanges this is indeed normal and (YES) expected from these speculaitve microcap plays. Most investors who've dabbled in these markets over the years KNOW.......that 9 out 10 companies will do this at least once over the course of their stay here.
What makes the Silver Spruce situation worse is that it has done this two or three times already. What i call a rinse&repeat maneuver and the probablity is quite high they will attempt to do this again quite soon to keep the jig going longer. This fact combined with the reality that this company is and was always a "lifestyle shell" (for those that don't know what that is refer to my previous posts) makes this outcome VERY probable. I'm guessing this has been most likely discussed internally at some level with the mgmt and is probably in the early stages of being outlined & implemented. So folks should not surprised if this mgmt throws another nasty curveball to s/h in the next 6 months. Imo, the probability is quite high they will at some point as they cannot hide their past actions, a tiger never changes his stripes and in the end, this is their primary objective.
Therefore, my prediction. Before the year is out, they will announce (or at the very least indicated their willingness to do one) anywhere from a 5 - 10 to 1 share consolidation and a subsequent PP soon after. Of course this will as usual wipe out ANY investor currently holding the "old" shares prior to the RS.
Good luck & God speed