Ill say it again. If you had 100-200 million share
Post# of 15187
accumulated as payment as deferred salary compensation, why would you
throw that away?
If this company sees that it will continue to grow and has the potential
to accelerate sales, this is a no brainer. By the time of filing, if the last
q or two are dynamic, your looking at a dramatic move in pps. .06,.08 .10,allowing management to cash some shares out and make some life changing money. Then later, they can sell the company and double dip. I would guess they own preferred shares too and a sale would have them triple dipping.( when the HJOE company is sold)
Keep in mind this is not a small business like your local bar, that only needs
to run on a fixed amount of income each year and can stay private. (The bar can take profits out at the end of the year). A growing beverage company must recycle and plow all monies back into the product:production,labor,packaging,artwork,new product dev,patents,etc.
The best way to raise capital is through stock. The best way to keep money for a company is issuing shares for employees, where they can later cash shares in.(the company doesn't have to pay employees directly)
If HJOE sees some monster progress on any one of their fronts, insiders
will only have to sell a fraction of their shares to make life changing money. They can keep the remaining shares for a sale and then make out like bandits again later.
(Ex. )So lets say one person in management has 100 million shares. If they crank out a hefty Q or two when all Q;s are filed and the pps goes to .10. They would only need to sell 20% of their shares for a 2 million dollar hit. Then they would still have 80 milllion shares left.If you are private where can you hit for that type of money and still own the company. The beauty about being a public company is you can become rich without selling your company. Being private you wont make mad money till the end, when you sell.
Seems like an easy decision to me. Spend 100,000-200,000 to refile and trade for the opportunity to make 2-5-10 million dollars on your stock compensation before you even think of selling the company.
TS