Questionable practices with common stock offerings 25,000 to 1 reverse split on stock No answers on why this occured Changing of ticker symbol numerous times.
This is a 'penny' stock that one could purchase on the OTCBB (Over the counter bulletin board). The stock was originally offered at $0.0001 per share, of which I bought 2,000, 000 for about $400.00 not including brokers fees. The stock was doing everything like any other stock was doing in these times, just bouncing around. The business also looked promising in some of their research areas.
In November of the company decided to do a reverse split on the stock, at the ridiculous split of 25,000 to 1.in essence, I now have 80 shares worth about $0.25 each; In all I have now only $80.00 for this stock, on top of that each investor was charged a $25.00 restructuring fee. After all the fees etc. I would only be able to sell and maybe get a nice lunch for myself somewhere.
All in all, I have read numerous reports lately about this company doing this over and over; providing potential investors with an attractive investment opportunity only to turn around and pull out a reverse split without keeping the value somewhat the same (which may not be possible). And as I have stated throughout this article, this is a "pharmaceutical" company, and the CEO has supposedly just received some new type of fastener that has a variety of uses in, get this, the construction business! I thought this was a pharma company? I also listed some of the various ticker symbols that have been used. I would warn everyone to stay away from this company (and probably many more on these smaller exchanges).
The MO of this company is to attract investors with a sure deal and making the investment look as though 'you couldn't miss'. Then, perform the reverse split and rob everyone blind. Third, change the symbol enough times within one month that I had trouble even finding it again. And finally, starting the whole shanigan over again with some other 'fabulous' investment opportunity which is about to be capitalized on.
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