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Posted On: 07/07/2018 10:53:17 PM
Post# of 1481
Selling shares to an institutional investor wouldn't be the same as some note holder getting to convert a debt and dump shares on us. In either case, they are restricted shares for at least six months but the difference is that an institutional investor would typically be expected to hold their shares for a bare minimum of a year, more likely 3-5 years.
I do agree that an explanation in advance of the pre14c would have been preferable. Maybe we will get one on Monday.
In regards to waiting to file the pre14c until after the pen had shipped, well, maybe Daniel thought it was better to get the tougher news out of the way first.
Who knows...
Here are some examples of Daniel discussing his reasoning behind the previous Pre14c. He also discussed the subject in some interviews:
Company has filed a Pre-14C as the board believes that the company's outstanding shares may need to be reduced through a reverse split with the goal of:
1.Facilitating potential higher levels of institutional stock ownership where investment policies generally prohibit investment in lower priced securities.
2.Creating a capital structure that better reflects a potentially profitable company.
3.Better matching the number of shares outstanding with the size of the company in terms of market capitalization, shareholder equity, operations and potential earnings.
4.Better enable the company to raise funds.
The board shall maintain the right to elect not to proceed with the reverse split if it determines that this proposal is no longer in the best interest of the company.
https://www.otcmarkets.com/stock/MYDX/news/My...?id=148234
"The initial reason for ratifying and approving the reverse split was that the board believed that the Company's outstanding shares may have needed to be reduced with the primary goal of better enabling the Company to raise funds to finance growth as well as facilitating higher levels of institutional stock ownership where investment policies generally prohibit investments in lower-priced securities."
https://www.otcmarkets.com/stock/MYDX/news/My...?id=178642
I do agree that an explanation in advance of the pre14c would have been preferable. Maybe we will get one on Monday.
In regards to waiting to file the pre14c until after the pen had shipped, well, maybe Daniel thought it was better to get the tougher news out of the way first.
Who knows...
Here are some examples of Daniel discussing his reasoning behind the previous Pre14c. He also discussed the subject in some interviews:
Company has filed a Pre-14C as the board believes that the company's outstanding shares may need to be reduced through a reverse split with the goal of:
1.Facilitating potential higher levels of institutional stock ownership where investment policies generally prohibit investment in lower priced securities.
2.Creating a capital structure that better reflects a potentially profitable company.
3.Better matching the number of shares outstanding with the size of the company in terms of market capitalization, shareholder equity, operations and potential earnings.
4.Better enable the company to raise funds.
The board shall maintain the right to elect not to proceed with the reverse split if it determines that this proposal is no longer in the best interest of the company.
https://www.otcmarkets.com/stock/MYDX/news/My...?id=148234
"The initial reason for ratifying and approving the reverse split was that the board believed that the Company's outstanding shares may have needed to be reduced with the primary goal of better enabling the Company to raise funds to finance growth as well as facilitating higher levels of institutional stock ownership where investment policies generally prohibit investments in lower-priced securities."
https://www.otcmarkets.com/stock/MYDX/news/My...?id=178642
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