Well, if our div share counts get reduced like tha
Post# of 36537
(Total Views: 269)
Posted On: 05/19/2021 10:20:03 PM
Well, if our div share counts get reduced like that, so do Generex's shares. So I can't see Joe converting for much less than a 1:1 ratio.
I believe the Class A and Class B are equally weighted as far as ownership goes. And each votes. (Although it says the Class B gets "dividend priority over Class A"... but I doubt that will come into play in the first 18 months or less). So it would seem that the market would equate the total value to the total shares, despite the OTC/Naz issue.
I wouldn't imagine Generex would sell any shares of Class A, so that should keep the float low. And the B shares being on the Naz will draw some attention. Maybe with a fixed maximum conversion date, some institutions will be able to buy the Class A shares (?) and play the arbitrage if there is a price differential.
Another point in our calculations is the warrants. Two come with each Class B share, and each has an exercise price. So this is built-in dilution. But depending what the exercise prices are, NGIO could raise capital upon the exercising of the warrants. Presumably one of the exercise prices will be lower than the other, or they would simply issue 2 of the same warrant.
Hopefully at least one of the warrant exercise prices is somewhat high, so the initial investors have a reason to hold shares and want to squeeze the price higher.
But until we know the exercise prices of the warrants, we can't really understand the whole share price equation.
Any way you look at it, this is a step in the right direction, even if the Class A/B issue isn't optimal. Good work, Joe and Team!
I believe the Class A and Class B are equally weighted as far as ownership goes. And each votes. (Although it says the Class B gets "dividend priority over Class A"... but I doubt that will come into play in the first 18 months or less). So it would seem that the market would equate the total value to the total shares, despite the OTC/Naz issue.
I wouldn't imagine Generex would sell any shares of Class A, so that should keep the float low. And the B shares being on the Naz will draw some attention. Maybe with a fixed maximum conversion date, some institutions will be able to buy the Class A shares (?) and play the arbitrage if there is a price differential.
Another point in our calculations is the warrants. Two come with each Class B share, and each has an exercise price. So this is built-in dilution. But depending what the exercise prices are, NGIO could raise capital upon the exercising of the warrants. Presumably one of the exercise prices will be lower than the other, or they would simply issue 2 of the same warrant.
Hopefully at least one of the warrant exercise prices is somewhat high, so the initial investors have a reason to hold shares and want to squeeze the price higher.
But until we know the exercise prices of the warrants, we can't really understand the whole share price equation.
Any way you look at it, this is a step in the right direction, even if the Class A/B issue isn't optimal. Good work, Joe and Team!
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