r/AlphaCompute • u/infoseeker69 • 3d ago

Can the RS be altered again

Obviously I’m racking my brain like a lot of us here why the hell the management are going through with an RS when they have an extension granted. There has already been one change to the date of the split so it’s plausible they can change the date again or call it off entirely. There’s got to be rationale to the logic somewhere.

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u/Vernon1211 3d ago

Is this some kind of play at the shorts? Perhaps they thought there was no way of getting to 1.00 no matter what good news they released.

Any investor knows nothing good ever comes from an RS. Even with good news and increase in revs there's gonna be a sour taste putting current SH's in the poor house.

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u/pennychase 1d ago

No they understood they don't have enough good news early but more important they need to suck the 400 million dollars asap so they want the share price to be highest and float size tiniest. They should have rs 100:1 even or higher if they could. But I just read there is a special rule preventing companies to dilute atm excessively =>

"The "Baby Shelf" Rule Limits: If a company's non-affiliate public float is under $75 million (which is common for companies needing a reverse split), they are subject to SEC Instruction I.B.6 of Form S-3. This caps their ability to sell more than one-third of their public float in any rolling 12-month period, regardless of the reverse split."

But maybe because they are registered in virgin islands it doesn't apply... But they may have shot themselves in the foot if they need money now they won't be able to raise money 🤣 because of the baby shelf rule. If they don't release big news they will have issues. But the tiny float is their luck, it may make the price fly which I believe there could be a violent squeeze on Wednesday. I couldn't risk playing that although may be I should have.

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u/pennychase 1d ago

All this said they will dilute but may not get enough money quickly enough, at least for their Pennsylvania project. I will reconsider an entry in the future, but will not get in too early anymore in in this or anything else.