Protagenic Therapeutics Inc. (PTIX)

[buckhunter102001]

I asked this question several times but no one has really given a legitimate answer...Can the company legally buy back shares into the treasury to be automatically deregisterd per the last POS AM filing and thus decreasing the O/S and increasing the value per share in the event of a buyout?

That possibility keeps popping in my head...If I'm an insider and already own shares and I know that we are in buyout negotiations, I hope this stock continues to decline so that my MM can put shares back into the treasury (which would automatically deregister them under the last POS AM filing) and for each share that gets pulled back out the O/S, my investment value increases...So, when the buyout price is announced the fewer shares O/S the more price per share we get. Just more speculation but I think it might be a loophole to insider trading.

I just answered this question with a quick google search:

http://en.wikipedia.org/wiki/Share_repurchase
Quote:
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It is relatively easy for insiders to capture insider-trading like gains through the use of "open market repurchases." Such transactions are legal and generally encouraged by regulators through safeharbours against insider trading liability.[1][2]-------------------------------------------------------------------------------

LOL...And read this part haha

Quote:
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Repurchasing shares when a company's share price is undervalued benefits non-selling shareholders (frequently insiders) and extracts value from shareholders who sell. There is strong evidence that companies are able to profitably repurchase shares when the company is widely held by retail investors who are unsophisticated and more likely to sell their shares to the company when those shares are undervalued.
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This sounds VERY FAMILIAR!!!