My guess is with 2 billion authorized shares, a sp
Post# of 30067
Posted On: 08/08/2014 6:59:30 PM
My guess is with 2 billion authorized shares, a spin-off of one division could be done by allocating 500 million to 800 million of the newly authorized shares for the spin-off, leaving the remainder for the holding company and still leave room for expansion.
Again, that's just a guess. I have no prior experience with spin-offs. But it would certainly explain the reasoning for doubling the current authorized shares. It doesn't seem 1 billion additional shares would be needed for raising capital for the current holding company, but it might be needed to raise capital for a spin-off division. This may simply be the next step in Gerald's strategy in establishing the holding company. Hopefully we'll find out more on Monday.
Again, that's just a guess. I have no prior experience with spin-offs. But it would certainly explain the reasoning for doubling the current authorized shares. It doesn't seem 1 billion additional shares would be needed for raising capital for the current holding company, but it might be needed to raise capital for a spin-off division. This may simply be the next step in Gerald's strategy in establishing the holding company. Hopefully we'll find out more on Monday.
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