From: Art Gecko |
REFERENCE: SEC File No. 4-500. GVRP - What's up?! ****** - Explanation of the situation in depth >> http://www.tgllive.com/gvrp.htm ******* A large reverse split followed by a large forward split is not uncommon to reduce shareholders, paying off those that hold fractional shares in cash. The reverse split is followed immediately by the forward split, Now GVRP: *******05/21/05 the OTCBB.com site is down for maintenace this weekend, the links below will be active when they're back online again******* Here's the scenario, Then apply a 1 - 6,500,000 reverse split: http://www.otcbb.com/asp/dividend.asp?sym_id=GLVP&dDate=05/12/2005&sDateType=ex_date , to eliminate all current shareholders, paying off the fractional shares next to nothing, Then forward splitting the shares 3,000,000-1 over a week later http://www.otcbb.com/asp/dividend.asp?sym_id=GVRP&dDate=05/23/2005&sDateType=ex_date And perform a merger and name change: http://biz.yahoo.com/bw/050517/175743.html?.v=1 Once the reverse split was performed, the box in level2 stayed blank, no MM's since early morning 05/17/05. An MM showed up EFGI on the offer, selling the shares $3.50 to start, WAAAY before Ex-Date 05/23/05. Then shortly later a PR came out stating it has finalized a Merger Agreement with DigiKidz Holdings, Inc, and has also filed with the State of Florida to change its name to Media Magic, Inc. after effecting the Merger. Well, it appears the company jumped the gun, thinking they had already forward split the shares and had begun a news release and dump campaign. They sold a total of 34,853 shares, shares that have due bills attached entitling the buyer to the Ex-Date forward split! GVRP open high low close change volume
05/17/05 3.50 4.75 2.90 3.75 +0.25 34,853
Now the company will have billions of shares out beginning Monday 05/23/05, just from the shares sold on 05/17/05 alone. They have a mess at hand, calls made confirmed the forward split has not been performed yet, calls to transfer agent showed there was 3 shareholders at the beginning of the day. Shares were sold, and the buyers are having a really fun time, if nothing else, it's worth the entertainment value. Many have bought their admission ticket and having a ball! (thanks steve! http://www.investorshub.com/boards/read_msg.asp?message_id=6380160 ) A few Terms: ex-date For stock splits, the date that the share price changes to reflect the split. Definition 2 For dividends, the first day of the ex-dividend period. The ex-date was created to allow all pending transactions to be completed before the record date. If an investor does not own the stock before the ex-date, he or she will be ineligible for the dividend payout. Further, for all pending transactions that have not been completed by the ex-date, the exchanges automatically reduce the price of the stock by the amount of the dividend. This is done because a dividend payout automatically reduces the value of the company (it comes from the company's cash reserves), and the investor would have to absorb that reduction in value (because neither the buyer nor the seller are eligible for the dividend). also called ex-dividend date.
record date payment date Due Bills Rules from the NASD http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003997.pdf **************UPDATE**************** Posted by: Jim Bishop Wayne I just talked to both Brendy and Lorraine at Interwest Transfer. I've confirmed that post R/S but before F/S there's 11 shares outstanding.
Posted by: Jim Bishop GVRP Okay here's the deal. Brendy at Interwest told me there were 33 million shares out as of close yesterday. She could not tell me how many of those are restricted. She said that is post R/S but she didn't seem to know about any F/S. I said, that makes no sense. If that is before the F/S and there is a 3 million to 1 F/S coming Monday, that means there will be 99 TRILLION shares out Monday morning...how many do they have authorized. That's when she passed me on to Lorraine.
Posted by: Jim Bishop GVRP conversation with Lorraine at Interwest. Lorraine confirms there are 33 million outstanding today. To make long story short, they adjusted their system for the 3 million F/S last Friday the 13th which is record date.
I told her that is wrong, that the F/S doesn't actually take effect until Ex Div date and NASD has set that date as May 23rd, Monday. She said, "that's not how we do it".
LOL I said, well that's how NASD does it and anyone selling those shares before Ex date, sells the split shares too.
Posted by: Jim Bishop
EVERYONE! I'm saying this once for now then I gotta get moving. Brian at NASD Customer Complaints just called back after confirming with Nasdaq that GVRP ex dividend date it May 23 and it is trading Due Bills redeemable and yes....if I own it Monday morning I will be owed 3 million shares for every one share I own and they are due to be paid to me on or before the Due bills date of May 25th. Nasdaq agrees. LOL Brian adds, "good luck Jim, I just hope that paper is worth something"
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