Aug. 20 at 1:28 PM
$NUGN Let’s break this down simply:
1️⃣ The company has 2.249B common shares outstanding. They’re doing a 1-for-20,000 reverse split, which wipes out most retail positions. Example: 1,000,000 shares → only 50 shares left.
2️⃣ Insiders hold 250M Class C preferred shares that are unsplittable. That means while retail takes the 20,000-to-1 hit, insiders’ shares stay intact.
3️⃣ After the split, they set up a “new structure” with 5M outstanding shares. Then insiders convert their C shares into common at a valuation claiming
$350M market cap.
👉 Translation: Retail gets diluted, insiders get control.
4️⃣ Market cap doesn’t magically jump because of a restructure. If the company is worth ~
$7.87M now, it’ll still be worth what the market believes based on actual performance. Shuffling shares doesn’t create value.
⚠️ Reverse splits + insider conversions like this are the classic OTC trap. Regular shareholders lose, insiders win.
