Liberty Star Uranium & Metals Corp.

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Message: Question

The OTC (over-the-counter) market does not have listing requirements related to stock prices. Heck, neighbor Nord is bankrupt, and in receivership, but their stock still trades (with no assets to support it). Some of the people who are buying the stock are ignorantly betting there will be something left to distriute to shareholders once debts are settled, but that's an exceptionally unlikely scenario. The other buyers of Nord are just flipping with no regard to fundamentals.

In a somewhat related concern, there is no need ever for any compay to do a reverse spilt unless that is a requirement of a securities dealer who is participating in a financing. Such is very rare these days as these types of financings largely departed the resources market around the time of the Financial Crisis. It still happens, but not nearly as often, and it can happen for other reasons too, but, again, we aren't seeing such too often these days.

As a shareholder, I would not vote to approve a reverse split unless the stock were on a very stong up-trend and with a good tailwind to keep it going. Even then, a split would not be needed, but it could put the stock onto the sceens of different classes of investors, something that might add more value to the company, ...might.

...all in my opinion, of course.

VP

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