Replies to post #133530 on Bravatek Solutions Inc (BVTK)

[TenKay]

Possible? Depends on how you define possible..could the earth be incinerated by a solar flare in the next month? Possible...but not likely.

So I will say what you describe falls in the “not likely” category. There is a regulatory issue with what you suggest as well as an economic risk issue that makes it unlikely anyone would be willling to do what you suggest on behalf of BVTK.

First the regulatory issue: what you describe would have to be treated as a company share repurchase by an affiliate since ultimately the company is paying for the shares itself through its payments to the “investor” who bought the stock on the basis of an agreement with the company. And since it would have to be treated as a buyback it would be subject to the same limitations and reporting requirements that BVTK is currently subject too. And if BVTK ever got itself to the point of actually being able to undertake a buyback then why would they need the “equity investor”? So that makes it unlikely.

But putting the regulatory issue aside and perhaps arguing that the “equity investor” is taking an economic risk in supporting this...One would have to ask why would they do that? In the scenario you describe, in order to buy 2 Billion shares, it would probably cost the investor at least $20 million (probably a lot more) given that the price would rise as a result of the buying pressure. The way you describe it, the investor then holds the stock until such time as the company can pay him what he spent plus a 15% return. So his upside is 15%. But his downside is somewhat deeper. Why? Because if the company can’t pay it, then the idea would be he could then sell the stock back into the market...but he would have little hope of recovering his investment because the company’s inability to provide him with his return would suggest that the company performance would not support the stock value...AND he is now stuck with trying to sell 2 Billion shares BACK into the market with a company that has fallen short on its business performance.

So while his upside is 15%, his downside is significantly more...and nobody that has that kind of money made it making dumb investments like that.