My suggestion is to buy as many shares as you can
Post# of 15624
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Posted On: 01/29/2018 11:24:38 AM
My suggestion is to buy as many shares as you can afford on the open market. In a PM a couple of weeks ago I suggested to you that the shares I purchased through a private placement were finally being transferred to my trading account. Far from it!!! There are too many strings attached, aka restrictions that prevent you from trading them freely in the open market.
The impression given at the time of purchase is that these restricted shares would be restricted for 6 months before they could be transferred to one's personal account. That was the only part that was clearly explained and understood. What was not explained is that once transferred the shares had to be sold within a certain period of time. Upon further questioning the transfer agent also explained that once sold you could not buy them right back as that would be seen as circumventing the rules. Wtf these are serious restrictions don't you think? Some brokerages are willing to break the rules or look the other way and that is fine I guess if that works for them. My brokerage, RBC Direct investing is not one of them and I honestly can't blame them for sticking to the rules. The good news in all of this is that after February 21, the anniversary of when I first purchased the shares, the shares will become unrestricted and then I can do whatever I want with them just like I can with the others I have in the account.
The only reason I was attracted to the private placement is because it also included warrants at double the price ($1.40 in my case). Will I exercise my right to buy the shares after the 18 month waiting period? They would have to be trading for at least double or triple the warrant price before I went ahead with it, and even then I would have serious reservations. The restrictions imposed are just too onerous and risky.
To summarize, before agreeing to buy any shares on a private placement, my advice to anyone is to read the fine print first. Even at a 20-30% discount you are still much better off to buy them on the open market. That way you will have a stress free year ahead of you and you don't have to put up with the aggravation and anger as to why this was not spelled out to you at the beginning. Seeking help from the company on this was met with disdain and annoyance which was really disappointing when you consider that their initial promise was to help with the transfer when the time came. As for their Florida representative handling the private placement? The kindest thing that I can say about him is that he is definitely not the sharpest tool in the toolbox. I mean is this the best that the company can do? On a positive note I found that the company's lawyer handling the private placement, Richard Rubin was very kind and helpful.
GLTA
The impression given at the time of purchase is that these restricted shares would be restricted for 6 months before they could be transferred to one's personal account. That was the only part that was clearly explained and understood. What was not explained is that once transferred the shares had to be sold within a certain period of time. Upon further questioning the transfer agent also explained that once sold you could not buy them right back as that would be seen as circumventing the rules. Wtf these are serious restrictions don't you think? Some brokerages are willing to break the rules or look the other way and that is fine I guess if that works for them. My brokerage, RBC Direct investing is not one of them and I honestly can't blame them for sticking to the rules. The good news in all of this is that after February 21, the anniversary of when I first purchased the shares, the shares will become unrestricted and then I can do whatever I want with them just like I can with the others I have in the account.
The only reason I was attracted to the private placement is because it also included warrants at double the price ($1.40 in my case). Will I exercise my right to buy the shares after the 18 month waiting period? They would have to be trading for at least double or triple the warrant price before I went ahead with it, and even then I would have serious reservations. The restrictions imposed are just too onerous and risky.
To summarize, before agreeing to buy any shares on a private placement, my advice to anyone is to read the fine print first. Even at a 20-30% discount you are still much better off to buy them on the open market. That way you will have a stress free year ahead of you and you don't have to put up with the aggravation and anger as to why this was not spelled out to you at the beginning. Seeking help from the company on this was met with disdain and annoyance which was really disappointing when you consider that their initial promise was to help with the transfer when the time came. As for their Florida representative handling the private placement? The kindest thing that I can say about him is that he is definitely not the sharpest tool in the toolbox. I mean is this the best that the company can do? On a positive note I found that the company's lawyer handling the private placement, Richard Rubin was very kind and helpful.
GLTA
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