Greystone Logistics (ticker: GLGI) announced on June 18th that they will be holding a special meeting of shareholders on August 2nd to approve an amendment to the Company's certificate of incorporation to effect a reverse stock split of its common stock at a ratio of 1-for-10,000 shares. The rationale behind the reverse stock split is to reduce the number of record holders of their common stock to fewer than 300, so that they will be eligible to terminate the public registration of their common stock and eliminate the costs of public filings. Under this reverse stock split, any shareholder owning fewer than 10,000 shares of GLGI will be cashed out at a price of $0.50/sh, which, as of today’s closing price of $0.45, would generate a gross return of 11% in 42 days, for an IRR% of 150%. Given the small dollar amount of the transaction, this idea is strictly for PAs.

Key Dates:

(1)    Announcement of reverse stock split – June 18^th

(2)    Effective date for voting rights – July 1^st

(3)    Special Meeting of Shareholders – August 2^nd

(4)    Estimated Distribution Date – August 9^th

Other Notes:

(1)    Insider’s effectively own 47.5% of the company (through preferred and common shares), giving confidence that the deal will go through.

(2)    Simple majority needed to approve the transaction.

(3)    Why leave $450 on the table?

In summary, we believe that you can buy $4,550 worth of GLGI stock and receive $5,000 of cash around August 9^th, with very little risk of the deal breaking given the large insider ownership.