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McLaren Resources (CNSX:MCL) Drills 7.0 Grams Gold Over 7.4 Metres at the TimGinn Property Located Adjacent to the Hollinger Mine *CLIENT* Read More | Watch Beyond the Press Release

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Re: what the hell....

in response to what the hell.... by storm5151
posted on Oct 23, 08 03:33PM

It doesn't make a lot of sense doing a reverse split at 10 to 1, does it? Admittedly, the proposal is "one new common share for up to 10 pre-consolidation common shares", but why do it at all? I can't think of a good reason. If a PP is needed, the proportional dilution will be the same under both share structures. And that assumes the SP won't tank after the reverse split, which often happens.

Lar

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