For those of you who read the 8K today regarding t
Post# of 2009
Posted On: 11/21/2014 10:34:19 AM
For those of you who read the 8K today regarding the case that was just closed below are two critical points to take away from it
1. "The Stipulation gives the Company the right, at its option, to set a reasonable floor price before the beginning of each trading day, representing the minimum price at which ECVI may sell Shares during that day. In the event a floor price has not been provided for a trading day, the most recently provided floor price will apply to that trading day"
This means XUN will control at what price shares can be sold into the market. This is not anywhere near the toxic debt of the likes of Asher or others who decide when, where and how much of the debt they can dumb into the mix at any point in time.
2. "At no time will Shares be issued to ECVI in an amount which will result in ECVI owning more than 9.99% of the Company ’ s issued and outstanding shares and as such, the Shares to be issued to ECVI are expected to be issued in tranches."
Tranches are partial lots of the whole number of shares that they company will eventually have to provide to ECVI. This in turn will help prevent ECVI from shorting the stock at any point in time.
These two items, XUN controlling the floor price and the number of shares released each time will help XUN limit shorting and mass dilution into the market.
For ECVI to accept this they must be very, very comfortable that XUN's PPS is going to go up, and up big time in the near term future.
1. "The Stipulation gives the Company the right, at its option, to set a reasonable floor price before the beginning of each trading day, representing the minimum price at which ECVI may sell Shares during that day. In the event a floor price has not been provided for a trading day, the most recently provided floor price will apply to that trading day"
This means XUN will control at what price shares can be sold into the market. This is not anywhere near the toxic debt of the likes of Asher or others who decide when, where and how much of the debt they can dumb into the mix at any point in time.
2. "At no time will Shares be issued to ECVI in an amount which will result in ECVI owning more than 9.99% of the Company ’ s issued and outstanding shares and as such, the Shares to be issued to ECVI are expected to be issued in tranches."
Tranches are partial lots of the whole number of shares that they company will eventually have to provide to ECVI. This in turn will help prevent ECVI from shorting the stock at any point in time.
These two items, XUN controlling the floor price and the number of shares released each time will help XUN limit shorting and mass dilution into the market.
For ECVI to accept this they must be very, very comfortable that XUN's PPS is going to go up, and up big time in the near term future.
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