OSL Holdings Inc (OTCMKTS:OSLH) will not follow what seems to be trending among its peers – reverse stock splitting. As helpful as the move might be in enabling the company rework its share capital structure, it is just not urgent. The company said that its prime focus currently is on building shareholder value through properly integrating its recent acquisitions and other strategies. There is more work to do that there isn’t time to think about reverse-stock-split. However, the company said it could still think about that move in the future when it has dealt with the most pressing matters.
Share capital restructuring can wait
The past several months have seen a number of companies tweaking the share capital structure, mostly to avoid liabilities and strengthen shares. However, OSL Holdings Inc (OTCMKTS:OSLH) won’t just reverse-split its stock because everyone else seems to be doing it. Instead, the company’s executive team together with the board of directors found it prudent to give reverse stock splitting a wide berth, at least for the time being.
OSL Holdings Inc (OTCMKTS:OSLH) is known as a provider of transactional networks whose aim is to connect brands and distributors to consumers. That is what the company wants to continue building so that it makes its platforms even greater for what they are supposed to be. The company is also venturing into new areas such as legal cannabis industry to purse new growth opportunities.
OSL Holdings Inc (OTCMKTS:OSLH) recently closed the acquisition of Go Green Hydroponics, which it has been working to integrate into its system as it explores new possibilities. Therefore, OSL thinks that it already has its work cut out and that is where the management wants to focus so that they can unlock more shareholder value. Because greater attention is turned to growing revenue and new acquisitions with the potential of bolstering overall business performance, reverse stock splitting can wait.
Both OSL Holdings Inc (OTCMKTS:OSLH)’s CEO, Bob Rothenberg and CBDO, Steve Gormley, are of the opinion that focusing on reverse splitting shares would adversely affect the company’s plans.