Well, yes, selling shares always dilutes the value
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Posted On: 04/11/2017 8:23:51 AM
Well, yes, selling shares always dilutes the value of individual shares -- but the way OWCP did it is the most acceptable for two reasons:
1) Restricted Shares is considered Non-Dilutive because unlike 'Convertible Notes', people who bought Restricted must wait 6 months in order to sell. These shares were also sold throughout two months, so even if every shareholder were to sell exactly at 6 months -- the selling would be spaced out over 2 months and wouldn't even be noticed. Convertible Notes don't always get an exact number of shares, they give a $100,000 loan to the company and state they want $125,000 back (for example) and can sell as many shares as it takes to achieve their pay back. That's why it's TOXIC DEBT -- because the Note holder can keep selling shares at ANY price to get their money back.
2) OWCP raised money for their trials and other important things that will make all of our shares worth far more in the not-so-long term. Most of the companies (on the Pink Sheets especially) that sell shares for financing are always NOT being fiscally conservative. They have big salaries and company expenses year after year without any revenue. It's obvious their goal is to simply run a Public Company to sell shares to pay their salary.
1) Restricted Shares is considered Non-Dilutive because unlike 'Convertible Notes', people who bought Restricted must wait 6 months in order to sell. These shares were also sold throughout two months, so even if every shareholder were to sell exactly at 6 months -- the selling would be spaced out over 2 months and wouldn't even be noticed. Convertible Notes don't always get an exact number of shares, they give a $100,000 loan to the company and state they want $125,000 back (for example) and can sell as many shares as it takes to achieve their pay back. That's why it's TOXIC DEBT -- because the Note holder can keep selling shares at ANY price to get their money back.
2) OWCP raised money for their trials and other important things that will make all of our shares worth far more in the not-so-long term. Most of the companies (on the Pink Sheets especially) that sell shares for financing are always NOT being fiscally conservative. They have big salaries and company expenses year after year without any revenue. It's obvious their goal is to simply run a Public Company to sell shares to pay their salary.
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