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Posted On: 10/25/2019 11:28:54 AM
Post# of 30035
I sold my shares in this stock some time ago but am intrigued by this new deal. As usual it is not totally clear in the pr, however I believe this is what is going to happen here:
Emerald is going to buy out all existing shareholders. If you own shares in AMBS now, you will wake up one day and you will no longer have those shares, but cash in your account instead. Of course the big question is how much is Emerald going to pay for those shares. My guess is probably not much of a premium over what they are trading for today.
This gives Gerald a clean slate. Gerald will then be able to go ahead and do a REG A offering with all new shareholders. The funds from the REG A will be used to pay off or pay down the debts. These new shareholders will be the ones to benefit from the preferred shares in Emerald and future royalties.
I don't think there was any other choice at this point- no way to do a reg a when the stock is at 2 cents. So this allows Gerald a do-over.
Emerald is going to buy out all existing shareholders. If you own shares in AMBS now, you will wake up one day and you will no longer have those shares, but cash in your account instead. Of course the big question is how much is Emerald going to pay for those shares. My guess is probably not much of a premium over what they are trading for today.
This gives Gerald a clean slate. Gerald will then be able to go ahead and do a REG A offering with all new shareholders. The funds from the REG A will be used to pay off or pay down the debts. These new shareholders will be the ones to benefit from the preferred shares in Emerald and future royalties.
I don't think there was any other choice at this point- no way to do a reg a when the stock is at 2 cents. So this allows Gerald a do-over.
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