I have really a problem understanding all of this.
Post# of 36536
(Total Views: 414)
Posted On: 05/20/2021 8:42:26 PM
I have really a problem understanding all of this.
If they sell 5M shares at 9 dollars and there are 105M shares, the market cap should be 945M. Now there are those class A and class B shares and the conversion rate.
share A: 0.7 (100M)
share B: 9 (5M)
MC = 9*5M+0.7/9*100M = 53M
That would mean GNBT owns around 6% of NGIO instead of the 60%. That doesn't make sense.
The value of the share A price depends on the relative difference in price with the share B (and inversely). if share B price increases, the value of share A decreases; if share A price increases, the value of share B price decreases. Why would the share A price aligns with the share B price? Just because it is what feels right?
I guess that I miss an important element.
If they sell 5M shares at 9 dollars and there are 105M shares, the market cap should be 945M. Now there are those class A and class B shares and the conversion rate.
share A: 0.7 (100M)
share B: 9 (5M)
MC = 9*5M+0.7/9*100M = 53M
That would mean GNBT owns around 6% of NGIO instead of the 60%. That doesn't make sense.
The value of the share A price depends on the relative difference in price with the share B (and inversely). if share B price increases, the value of share A decreases; if share A price increases, the value of share B price decreases. Why would the share A price aligns with the share B price? Just because it is what feels right?
I guess that I miss an important element.
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