griz: An APO for JBZY would be simply a way of rai
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Posted On: 01/15/2018 1:08:53 PM
griz: An APO for JBZY would be simply a way of raising capital and moving quickly to the Nasdaq.
The most likely scenario would be to issue new shares to an underwriter/institutional investor for the capital. It would increase the OS, but would not be dilutive because it would bring value for the shares issued.
Most financial arrangements would have clauses in them prohibiting the company from selling out or having a change in control during a certain period of time or issuing additional shares. This protects the new investor's equity stake in the company.
We do not know what the assets of JBZY are since there has not been a filing, but assuming they are in the billions, they could issue new shares at multiple dollars/share to raise capital, and we would open and begin trading in that price range at the time of the announcement.
If they were able to issue a billion shares at $10/share, they would have $10 billion in capital to grow with, and we would all be fainting.
The most likely scenario would be to issue new shares to an underwriter/institutional investor for the capital. It would increase the OS, but would not be dilutive because it would bring value for the shares issued.
Most financial arrangements would have clauses in them prohibiting the company from selling out or having a change in control during a certain period of time or issuing additional shares. This protects the new investor's equity stake in the company.
We do not know what the assets of JBZY are since there has not been a filing, but assuming they are in the billions, they could issue new shares at multiple dollars/share to raise capital, and we would open and begin trading in that price range at the time of the announcement.
If they were able to issue a billion shares at $10/share, they would have $10 billion in capital to grow with, and we would all be fainting.
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