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Posted On: 01/09/2021 1:28:39 PM
Post# of 36564
Buildit,
If the NGIO IPO is set strictly on the $500,000,000 evaluation, the outstanding shares would need to be reduced to 100,000,000 shares to justify a $5/share IPO. $5 is the minimum share price that must be met for publicly traded institutions to be allowed to buy shares in another company. Granted, a privately held company could buy shares at a lower price.
At 100,000,000 outstanding shares, GNBT would then only own 34,003,151 shares. (400,300,000 – 330,000,000 = 100,000,000 or 364,003,151(GNBT shares) – 330,000,000 = 34,003,151) This would leave GNBT only owning 34% of NGIO before the IPO shares are sold which will have to come from either the GNBT held shares or new issued NGIO shares which will increase the dilution of the 100,000,000 existing shares. Either way, it will still further reduce the GNBT percentage of NGIO shares held.
I don’t see how eliminating NGIO shares (by any means) is going to help GNBT increase its value. The only way I see to get a $5 IPO is to increase the perceived value of NGIO so that the IPO offer will be accepted by the public and hopefully intuitional buyers. Anything less than $5/share risks that the profit takers will tank the pps and NGIO gets quickly delisted, withers and dies in the toxic land of the OTC.
If the NGIO IPO is set strictly on the $500,000,000 evaluation, the outstanding shares would need to be reduced to 100,000,000 shares to justify a $5/share IPO. $5 is the minimum share price that must be met for publicly traded institutions to be allowed to buy shares in another company. Granted, a privately held company could buy shares at a lower price.
At 100,000,000 outstanding shares, GNBT would then only own 34,003,151 shares. (400,300,000 – 330,000,000 = 100,000,000 or 364,003,151(GNBT shares) – 330,000,000 = 34,003,151) This would leave GNBT only owning 34% of NGIO before the IPO shares are sold which will have to come from either the GNBT held shares or new issued NGIO shares which will increase the dilution of the 100,000,000 existing shares. Either way, it will still further reduce the GNBT percentage of NGIO shares held.
I don’t see how eliminating NGIO shares (by any means) is going to help GNBT increase its value. The only way I see to get a $5 IPO is to increase the perceived value of NGIO so that the IPO offer will be accepted by the public and hopefully intuitional buyers. Anything less than $5/share risks that the profit takers will tank the pps and NGIO gets quickly delisted, withers and dies in the toxic land of the OTC.
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