Posted On: 08/22/2016 5:45:29 PM
Post# of 72447
This is an interesting proposition. The quick math might go something like (using round numbers and estimates):
Prior to lawsuit
CTIX $4 per share, 150M outstanding = $600M cap
They raise $20M by selling 5M shares.
$620M cap, 155M outstanding, $4 per share
After lawsuit
They still need to raise $20M
They sell 13.33M at $1.5 per share
The stock price recovers to a $620M cap but now there are 163.33M shares outstanding to put the pps at $3.80
That means I lost $0.20 per share. That ticks me off!
Rosen owes us all a payment of about $0.20 per share as of ones individual holdings at the time of the lawsuit announcement.
I'd be tickled pink if something like that gets awarded to us shareholders, but I won't be expecting payment. Although I have no basis for not expecting, how often are such rulings made?
Prior to lawsuit
CTIX $4 per share, 150M outstanding = $600M cap
They raise $20M by selling 5M shares.
$620M cap, 155M outstanding, $4 per share
After lawsuit
They still need to raise $20M
They sell 13.33M at $1.5 per share
The stock price recovers to a $620M cap but now there are 163.33M shares outstanding to put the pps at $3.80
That means I lost $0.20 per share. That ticks me off!
Rosen owes us all a payment of about $0.20 per share as of ones individual holdings at the time of the lawsuit announcement.
I'd be tickled pink if something like that gets awarded to us shareholders, but I won't be expecting payment. Although I have no basis for not expecting, how often are such rulings made?
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