Posted On: 05/05/2014 2:44:28 PM
Post# of 41414
Another question: Baltia, why are you selling private placements? Are you unaware of PREFERRED STOCK? (at the SH meeting I asked three people about this, none had a single clue what I was talking about...)
For those of you unaware of preferred stock (and I'm guessing that's most if not all of you), here's how it works: Igor knocks on my door and says "Hey Ben, give me $1 million, and in return I'll give you a huge discount (say 75% below market price). But you cannot sell your stock until we reach a certain price above where we are now."
Doesn't that make so much more sense? It's called "convertible stock." Baltia could be selling it at .005 per share, and have the stock restricted until the market price reaches .20/share. Thousands of companies (LEGIT COMPANIES) do it every single year, and it's a very effective way to raise capital without HURTING THE STOCK BY DILUTING IT TO DEATH.
For those of you unaware of preferred stock (and I'm guessing that's most if not all of you), here's how it works: Igor knocks on my door and says "Hey Ben, give me $1 million, and in return I'll give you a huge discount (say 75% below market price). But you cannot sell your stock until we reach a certain price above where we are now."
Doesn't that make so much more sense? It's called "convertible stock." Baltia could be selling it at .005 per share, and have the stock restricted until the market price reaches .20/share. Thousands of companies (LEGIT COMPANIES) do it every single year, and it's a very effective way to raise capital without HURTING THE STOCK BY DILUTING IT TO DEATH.
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