Homerbedloe, That was an interesting read, but
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Posted On: 03/24/2021 10:58:29 AM
Re: homerbedloe #27796
Homerbedloe,
That was an interesting read, but too much lawyerese. Over a year ago, NuGenerex was spun out from Generex, assigned the NGIO ticker symbol and is a completely independent corporation with a board of directors. See SEC filings https://www.sec.gov/cgi-bin/browse-edgar?acti...p;count=40
At that time it was and still is a privately held company with about (as you said) 65% owned by Generex (GNBT) and 35% owned by individuals rewarded with free dividend shares. The goal is to make NGIO a publicly traded company. Even though there are many people owning the 35% of NGIO, these share were awarded privately as a dividend to GNBT shareholders and not to the general public, thus still keeping NGIO a privately held company.
To make NuGenerex a publicly traded company, it must be listed on a stock exchange (NASDAQ) meeting all their requirements, be SEC compliment (done), and have shares being offered to the public so anyone (not just dividend holders) can own them. This is what the IPO will accomplish when NGIO issues/sell some of their treasury stock.
As for GNBT getting its reward, let’s say the NGIO IPO goes at $5/share, GNBT will instantly gain about $320,000,000 worth of liquidly with the NGIO shares it owns and can sell anytime for any reason and use for any purpose. NGIO will be infused with IPO cash. And GNBT shareholders will be rewarded with the GNBT pps increase, should be around $3/share. To put it bluntly, there is no way in hell that if GNBT has $320 million in cash with only 114 million outstanding shares, that the pps can still be in the $.30s/$.40s.
That was an interesting read, but too much lawyerese. Over a year ago, NuGenerex was spun out from Generex, assigned the NGIO ticker symbol and is a completely independent corporation with a board of directors. See SEC filings https://www.sec.gov/cgi-bin/browse-edgar?acti...p;count=40
At that time it was and still is a privately held company with about (as you said) 65% owned by Generex (GNBT) and 35% owned by individuals rewarded with free dividend shares. The goal is to make NGIO a publicly traded company. Even though there are many people owning the 35% of NGIO, these share were awarded privately as a dividend to GNBT shareholders and not to the general public, thus still keeping NGIO a privately held company.
To make NuGenerex a publicly traded company, it must be listed on a stock exchange (NASDAQ) meeting all their requirements, be SEC compliment (done), and have shares being offered to the public so anyone (not just dividend holders) can own them. This is what the IPO will accomplish when NGIO issues/sell some of their treasury stock.
As for GNBT getting its reward, let’s say the NGIO IPO goes at $5/share, GNBT will instantly gain about $320,000,000 worth of liquidly with the NGIO shares it owns and can sell anytime for any reason and use for any purpose. NGIO will be infused with IPO cash. And GNBT shareholders will be rewarded with the GNBT pps increase, should be around $3/share. To put it bluntly, there is no way in hell that if GNBT has $320 million in cash with only 114 million outstanding shares, that the pps can still be in the $.30s/$.40s.
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