Hi Buildit - S1 is to register shares with SEC
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Posted On: 08/20/2020 10:41:32 PM
Hi Buildit -
S1 is to register shares with SEC to be sold.
Authorized shares, or authorized stock, are simply a legally allowed maximum number of shares that a company can issue to investors. The number of authorized shares is specified in the company’s articles of incorporation.
https://corporatefinanceinstitute.com/resourc...ed-shares/
On page 1 of today's S1 -
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☒
________
Rule 415 -
Shelf registration is formally known as SEC Rule 415.
Breaking Down Shelf Registration
Shelf registration is a method for publicly traded companies to register new stock offerings without having to issue them immediately. Instead, the securities can be issued at any time within a two-year period, allowing a company to adjust the timing of the sales to take advantage of more favorable market conditions should they arise.
Example -
Company Use of Shelf Registrations
SafeStitch Medical Inc. (formerly TransEnterix), a manufacturer of robotic surgical technology, used shelf registration to prepare new offerings to correspond with launch plans of a new product. When shelf registrations were expanded pursuant to the release of a new product line, the market responded with a 10% increase in share value. Even though the risk of share dilution was present, the market responded to the favorable news regarding the pending technological advancement.
https://www.investopedia.com/terms/s/shelfregistration.asp
____________
Buildit wrote -
I’m not sure I understand, Paul. Would a separate S-1 be required to cover a split in the future if there are 750MM authorized shares already?
Read More: https://investorshangout.com/post/newpost/622...z6ViT9Vctk
S1 is to register shares with SEC to be sold.
Authorized shares, or authorized stock, are simply a legally allowed maximum number of shares that a company can issue to investors. The number of authorized shares is specified in the company’s articles of incorporation.
https://corporatefinanceinstitute.com/resourc...ed-shares/
On page 1 of today's S1 -
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box: ☒
________
Rule 415 -
Shelf registration is formally known as SEC Rule 415.
Breaking Down Shelf Registration
Shelf registration is a method for publicly traded companies to register new stock offerings without having to issue them immediately. Instead, the securities can be issued at any time within a two-year period, allowing a company to adjust the timing of the sales to take advantage of more favorable market conditions should they arise.
Example -
Company Use of Shelf Registrations
SafeStitch Medical Inc. (formerly TransEnterix), a manufacturer of robotic surgical technology, used shelf registration to prepare new offerings to correspond with launch plans of a new product. When shelf registrations were expanded pursuant to the release of a new product line, the market responded with a 10% increase in share value. Even though the risk of share dilution was present, the market responded to the favorable news regarding the pending technological advancement.
https://www.investopedia.com/terms/s/shelfregistration.asp
____________
Buildit wrote -
I’m not sure I understand, Paul. Would a separate S-1 be required to cover a split in the future if there are 750MM authorized shares already?
Read More: https://investorshangout.com/post/newpost/622...z6ViT9Vctk
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