The company can't just "sell shares in to the mark
Post# of 148158
(Total Views: 621)
Posted On: 01/12/2022 6:02:39 PM
Re: Evil Rabbit #114858
The company can't just "sell shares in to the market" (the beginning of this thread).
They need to follow legal procedures, which would require currently approved and registered shares with the SEC. They don't have that right now, but they can sell shares to accredited investors.
They are doing this through Paulson and also will entertain direct deals with large buyers. These shares all have restrictions (mainly a six month holding period), and are sold with incentives (price discount and/or warrants).
And, or course, they can exchange restricted shares with Fife, which he can hedge and liquidate pursuant to his own business model.
But, they absolutely CANNOT just sell shares in to the general market on an "as needed" basis. This is why they are in a difficult cash flow position right now.
The vehicles described above take time. And, when the price drops like it has recently, they need to keep updating the terms in order to attract interest.
They need to follow legal procedures, which would require currently approved and registered shares with the SEC. They don't have that right now, but they can sell shares to accredited investors.
They are doing this through Paulson and also will entertain direct deals with large buyers. These shares all have restrictions (mainly a six month holding period), and are sold with incentives (price discount and/or warrants).
And, or course, they can exchange restricted shares with Fife, which he can hedge and liquidate pursuant to his own business model.
But, they absolutely CANNOT just sell shares in to the general market on an "as needed" basis. This is why they are in a difficult cash flow position right now.
The vehicles described above take time. And, when the price drops like it has recently, they need to keep updating the terms in order to attract interest.
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