well... I see it this way.... If BMSN was to op
Post# of 5066
well... I see it this way.... If BMSN was to openly sell all of their shares on the market.... by themselves... it would take a lot of work and energy. Constant adjustments due to fluctuations and they would probably completely crash the market doing so... But in this southridge agreement, they go "WE ARE CREATING 200 MILLION SHARES FOR YOU- AND YOU ARE BUYING THEM". Then southridge goes "At 91% of market value!" then BMSN goes OK HERE YOU GO! (Because selling 200 million shares all at once is VERY HARD TO DO! -- we dont get 100 million volume sometimes over the last 6 days!) (and would all that go to BMSN? probably not!)
soo... thats why I think it exists.... its bypassing the market and giving them cheap shares for less than 20 million worth of shares.... Its like going to moneymart instead of waiting for your cheque from work.... Just seems like an easy way for BMSN to trade...but its a put-agreement..... check it out at investopedia.
http://www.investopedia.com/terms/p/putoption.asp
Best I could do... Haven't had my coffee yet..