Yeah, there's no other way than accepting dilution, or it
Yeah, there's no other way than accepting dilution, or it will be nothing, and this counts both ways!
GTGP' OS is 40+ mil & our shares, if the planned sale goes through, will merge into an AS of 50 mil, and OS 22 mil.
So he'll either have to increase the AS of J3 or do a RS on our shares, with protection of the 22 mil that are in J3.
If he increases the AS of J3 to fully merge the 40 mil OS of GTGP we're accepting +50% dilution because we merge into an OS of 22 mil already.
Given the hardship we went through I think most will be happy with a scenario like that, but imagine you're a debt holder of J3, and funded the company in its initial stages, would you accept more shares added to the OS, which dilutes your potential EPS?
If they vote no, and they can because they hold 22 mil shares we'll have to accept a RS. Or another possibility would be that Jim simply pays us out... but that should be with money made from J3, which has a negative effect on the assets & cash position of J3, which again dilutes the current holders.
Not an easy decision!
At best we can hope for a major deal for J3. If he can somehow secure multiple contracts & rake in tens of million$ it will be easier for Jim to cough up $4 mil and pay GTGP'ers out at 0.10. (just an example).
Global Technologies (GTGP) Stock Research Links
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