I think Buildit has it right on the mechanics of a
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Posted On: 02/18/2020 3:24:14 PM
I think Buildit has it right on the mechanics of a sale.
Looks to me that under this S1, GNBT can offer Oasis up to 15,542,000 shares (page 6, table on page 30). But with the 4.99% restriction, it sounds like Oasis MUST sell the shares issued to them to keep their position under 4.99% at any time. So if there are approx 70 million shares after the dividend, and the full 15.5 million shares are issued, Oasis can only hold 4.25 million shares maximum to meet that requirement. So they will actually sell about 11.25 million shares over the course of the 36 month agreement, if/when fully executed if all 15.5 million shares are required to raise the $40 million.
It also appears that those numbers could be less IF the share price goes up, such that the $40 million doesn't require the full 15.5 million shares. If, for example, the pps was $4, GNBT would only have to offer 10 million shares to Oasis, with the same 4.99% ownership restriction and the terms of the offering would be fulfilled.
I'm probably missing something obvious here - these types of docs are mostly greek to non-SEC lawyers! LOL.
Edit - missed the 11 million shares to Discover as part of that note. So with that and the other holders, looks like around 100 million GNBT shares available. So Oasis could theoretically hold about 5 million shares to meet the 4.99% requirement, but it probably is more likely they will sell them to make their 10%.
Looks to me that under this S1, GNBT can offer Oasis up to 15,542,000 shares (page 6, table on page 30). But with the 4.99% restriction, it sounds like Oasis MUST sell the shares issued to them to keep their position under 4.99% at any time. So if there are approx 70 million shares after the dividend, and the full 15.5 million shares are issued, Oasis can only hold 4.25 million shares maximum to meet that requirement. So they will actually sell about 11.25 million shares over the course of the 36 month agreement, if/when fully executed if all 15.5 million shares are required to raise the $40 million.
It also appears that those numbers could be less IF the share price goes up, such that the $40 million doesn't require the full 15.5 million shares. If, for example, the pps was $4, GNBT would only have to offer 10 million shares to Oasis, with the same 4.99% ownership restriction and the terms of the offering would be fulfilled.
I'm probably missing something obvious here - these types of docs are mostly greek to non-SEC lawyers! LOL.
Edit - missed the 11 million shares to Discover as part of that note. So with that and the other holders, looks like around 100 million GNBT shares available. So Oasis could theoretically hold about 5 million shares to meet the 4.99% requirement, but it probably is more likely they will sell them to make their 10%.
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