I read it somewhat differently but I agree CRGP comes out a winner in all this. While COR did imply DRCC erroneously charged them, I'm presenting here what I think would transpire in court. CRGP will say they were working with DTCC and FINRA to understand what was occurring. Then CRGP understood what this 25% rule meant so Carter said talk to FINRA (as they determined ex-date). Subsequently CRGP bought back the shares in an effort to reduce potential problems for everyone and to reduce the temporary increase in OS. As to why they were "issuing shares" as was alleged while a buyback was happening? CRGP was likely converting notes (perhaps not just the ones mentioned in the complaint). Converting a note is not a reportable transaction, and much less if the company has the intent to offset dilution with a buyback IMHO. As long as the intent was to increase shareholder value I don't think anyone was misled (especially since the company has eliminated a liability from the balance sheet). The note holder made almost twice his money on conversion. The company gets to buy at reduced levels. Any savvy investor would know that intrinsic value was higher so CRGP could argue it did not affect any shareholder as even with a billion shares outstanding, price was undervalued and one would reasonably expect a holder to maintain its position.
Then again this won't go to court (IMHO this settles today or Monday).
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I invested in Calissio Resources Group because I considered the financial statements warranted an investment. For every reader here that has been paying attention to my posts, please note the following:
1) I am not licensed to give investment advice. Everything expressed here is an opinion of my own for discussion purposes.
2) The only thing I know about the upcoming merger is that typically they are good for investors. A premium is typically offered when companies go private from what I understand. I certainly was and still am an investor before this announcement was made.
3) Finally, regarding the current OS, while there is lots of conjecture, I must rely on the only available information out there which has been presented in PRs. Therefore, OS as of the last PR was 242m. Consequently, I don't believe there is reason to believe I am a majority holder, despite recent purchases, without making a large degree of assumptions.
If anyone is wondering why I am posting this, it is because I want to make sure no one misinterprets my posts or considers I have any intent on the board other than to share potential ideas/speculate on possibilities.