posted
OK i've been looking for a decent article to put here for you and can't find one...
here's ONE WAY they can run the deal in micro penny land...
this doesn't always apply BUT..... this how a less than honorable company MIGHT operate....
insiders of a co. will "exchange" their common shares for PREFERRED shares....
the insiders maintain control of the comapany AND usually have conversion rights attached to the prefered shares that allow them to "exchange" the prefered back into common shares...
the company then proceeds to RS the common shares only... this is often "painted" with a flourish, making it sound like they are doing it for the benefit of the shareholders.....
so now there are 1/100th the amount of COMMON shares...the PPS was increased 100X to reflect this.
the company now begins to sell more shares into the market until they once again have the same number of shares in the marketplace that they had before the RS... that is what drives the PPS back down.....
the INSIDERS still have the EXACT SAME amount of PREFERED shares that they always had.... the insiders holdings are never touched by the RS....UNLESS they convert them to common shares and sell them when the PPS is high(say right after the RS)....
[ February 25, 2005, 17:27: Message edited by: glassman ]
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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posted
Thank you for the post Glassman,for those of us that are looking for a position in a company can look here.Your hard work will pay off for a lot of us.Thank You.
Posts: 1326 | From: Providence,RI,USA | Registered: May 2004
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[b] SCHEDULE 14C INFORMATION REQUIRED IN INFORMATION STATEMENT
HEADLINERS ENTERTAINMENT GROUP, INC. 501 Bloomfield Avenue Montclair, New Jersey 07042
INFORMATION STATEMENT
To the Holders of Common Stock:
The purpose of this Information Statement is to notify you that the holders of shares representing a majority of the Common Stock of Headliners Entertainment Group, Inc., have given their written consent to a resolution adopted by the Board of Directors of Headliners to amend the certificate of incorporation of Headliners so as to effect a reverse split of Headliners Common Stock in the ratio of 1:1,000. We anticipate that this Information Statement will be mailed to shareholders of record on February 24, 2005. On or after March 17, 2005, the amendment to the Certificate of Incorporation will be filed with the Delaware Secretary of State and become effective.
-------------------- Don't envy the happiness of those who live in a fool's paradise. Posts: 36378 | From: USA | Registered: Sep 2003
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