Buildit, I’m enjoying this back and forth (de
Post# of 36566
(Total Views: 316)
Posted On: 01/09/2021 4:12:35 PM
Buildit,
I’m enjoying this back and forth (debate?) and will run with your counter post. 150,000,000 total float (outstanding) shares after the IPO @ $4/share. GNBT owns 364,003,151 NGIO shares (current 10-Q), which means it doesn’t own 36,296,849 shares (400,300,000 - 364,003,151 = 36,296,849). That leaves 113,703,151 to be divided up between GNBT and the IPO investors (150,000,000 - 36,296,849 = 113,703,151). Whether the IPO shares comes from GNBT or the NGIO treasury (new issue) the effect is the same, GNBT has further reduction in NGIO control (and net value to GNBT). How many share do you want to IPO offer? How about a meager 10,000,000 from the NGIO treasury. NGIO get $40,000,000 working capital and GNBT would have 103,703,151 NGIO shares (113,703,151 - 10,000,000 IPO shares). As a result, GNBT ownership is reduced to 69%. I suppose that is acceptable if Joe likes it. But that leaves far fewer shares of NGIO that GNBT can use (sell/trade) to raise capital for future projects. Remember that all the NGIO revenue stream (vaccines etc.) is the property of NGIO and its shareholders, not GNBT or its shareholders. GNBT pps is solely dependent on the value of its holdings and any shares at their disposal. I will assume that Joe and his team was well aware of all of this when he decided to initially issue 400,000,000 (later an additional 300,000) NGIO shares from the 750,000,000 total corporate shares. He could have just issues less shares to begin with.
PS: I’m a freebee poster and can’t remember how many posts I get daily, so any more back and forth may have to wait until tomorrow.
I’m enjoying this back and forth (debate?) and will run with your counter post. 150,000,000 total float (outstanding) shares after the IPO @ $4/share. GNBT owns 364,003,151 NGIO shares (current 10-Q), which means it doesn’t own 36,296,849 shares (400,300,000 - 364,003,151 = 36,296,849). That leaves 113,703,151 to be divided up between GNBT and the IPO investors (150,000,000 - 36,296,849 = 113,703,151). Whether the IPO shares comes from GNBT or the NGIO treasury (new issue) the effect is the same, GNBT has further reduction in NGIO control (and net value to GNBT). How many share do you want to IPO offer? How about a meager 10,000,000 from the NGIO treasury. NGIO get $40,000,000 working capital and GNBT would have 103,703,151 NGIO shares (113,703,151 - 10,000,000 IPO shares). As a result, GNBT ownership is reduced to 69%. I suppose that is acceptable if Joe likes it. But that leaves far fewer shares of NGIO that GNBT can use (sell/trade) to raise capital for future projects. Remember that all the NGIO revenue stream (vaccines etc.) is the property of NGIO and its shareholders, not GNBT or its shareholders. GNBT pps is solely dependent on the value of its holdings and any shares at their disposal. I will assume that Joe and his team was well aware of all of this when he decided to initially issue 400,000,000 (later an additional 300,000) NGIO shares from the 750,000,000 total corporate shares. He could have just issues less shares to begin with.
PS: I’m a freebee poster and can’t remember how many posts I get daily, so any more back and forth may have to wait until tomorrow.
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