It’s happened again. Core Solutions Inc. (OTCBB: CSOU), which declared a 1 for 10,000 reverse split of its common shares on July 5, 2002, has called for another reverse-split. This time, the Company enacted a 1 for 25,000 share reverse split, effective October 23, 2002.
This means that someone who owned one billion shares of Core Solutions stock on July 4, 2002 now has 4 shares. Talk about shrinking values!
Theoretically, this might have caused Core Solutions share prices to rise by a factor of 25,000 – from one hundredth of a cent (the closing price on October 22nd) to $2.50. They did not. On October 25th, Core Solutions shares hit a high of $1.15, before dropping to 51 cents. Two days later, Core Solutions stock closed at 15 cents a share. The Company’s stock price was on its way down, and with good reason. Core Solutions has no cash and suffered net losses of almost $716,000 for the quarter ended June 30, 2002.
As best we can calculate from the public filings, Core Solutions had about 5,000,150,000 (5 billion 150 thousand) shares outstanding before the latest reverse-split. Now there are just over 200,000 shares outstanding.
This new development comes one month after the Company announced a stock buyback program. See Update: Core Solutions, Inc (F/K/A Premier Axium Asp, Inc.) – Split Happens. On September 10th the Company said it planned to buy back up to 100 million shares of its common stock over the next four months. After the latest reverse-split that would amount to 4,000 shares. Even that could be ambitious for this Company. As of June 30, 2002, Core Solutions had no money.
Now its investors have no shares – almost.
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