Cortex Business Solutions Inc. CTPNF

News out: Thoughts on a 1:50 Consolidation

[britishcinnamon]

How does this look?

Normally, for most tickers, this would be bad, but I feel like this will let CBX gain some visibility. Also, the over 300M shares are excessive. Reducing this number can be good on the long run.

Nevertheless, the term 'reverse split' has a sour reputation for SP drifting lower.

Opinions, thoughts?

[zerocool42]

seems to be quite the selloff so far this morning.

[britishcinnamon]

That's a typical first reaction to a proposed reverse split.  Of course, it has not happened yet, they will vote on it.  If everyone votes against, then it would be 'hazzah' all around and the sp would rebound. It doesn't answer the question: "Would this benefit the company?"

[Papagallo]

Reverse split usually ends badly. Getting very disappointed with CBX now. Why the hurry to do this? Why not put this off until they have some positive developments. If the s/p had risen on fundamentals to .25 or so, the consolidation would make sense at that time from a position of strength. Seems to me that the reverse split is a precursor to equity raise.

[britishcinnamon]

If other shareholders see this as a bad idea, then it will get voted out at the meeting.

[fatcharlie]

These as a general rule usually go through and 9 times out of 10 it is bad for the shareholders. On the other hand management usually end up with a few million in their pockets.  Despite the heavy promotion from Fabrice I don't think we have seen the bottom yet.  Wouldn't surprise me that those pushing this play have already limited their losses leaving the small investors to

[smithgee]

I am curious what Fab thinks of the deal and if he will put out another buy on CBX as these levels?

[BurconNutriFan]

Ever see a public company with 7M shares out? Nope, so there will be more capital raises to get enough to trade. If they aren't planning to raise more money they would just do a 10 for 1 instead of 50. //////////////////This will likely easily pass at the agm because nothing happens to hurt shareholders. You still own the same % of shares before or after so all the weird ideas posted today