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The response-
My question-
"Can a publicly traded company claim the money spent on a share buy-back program as a business expense on their taxes? I mean like, write it off as an expense such that they reduce their tax burden?"
Her response-
"Yes. As long as outstanding shares are purchased on the open market. Situations where company board members hold convertible notes consisting of restricted common shares and those notes are paid off cannot be, because the company already had that on the books as a debt. Shares retired from the treasury cannot be, simply because they are not in circulation, and as such, have no monetary value. The declared "par value" of the shares in the treasury make no difference when those shares are retired, because, again, they are not in circulation.
Shares repurchased by the company are simply entered as a credit to the cash account (as an expenditure) for the amount paid. If the original issue price exceeds the amount paid, the remaining credit should be recorded in the additional paid-in capital account.
There are "special purchase" conditions between a public company and an institutional investor, but it would take longer to explain all the nuances of those transactions"
.
Yeah, the business looks good. I think the problem was because they reverse merged into a publicly traded company that had a bad share structure, the SS now doesn't match the company, so the SS / valuation / share price relationship is all screwy at the moment.
I'm sure they will straighten it out somehow. Hopefully it does not hurt existing investors when they do it.
Honestly, I am not sure about that. But my sister is a tax attorney, so I will email her and ask. My guess is yes, but I will ask anyway and get back to you.
Like a tax write-off? Maybe if they paid that much in cash for it they could claim it as a business expense.
Dude, that's awesome! I never thought there would be such a list.
Yeah, absolutely (now that I know about it), that's where I would do my shopping for a cheap OTC ticker.
And most shareholders wouldn't accept a buyback offering anyway, since they would just be (essentially) selling all their shares for a small premium (maybe) over current market price.
I won't give up all the shares I own for $0.0009 if I can get $0.0020 for them, and neither will most retail investors.
Some people see this as a long term investment, so they certainly won't be giving up their shares.
So even if they wanted to buy back 1B shares, they may only get half that, which does nothing to help this bloated OS.
I looked at it again. I think I understand where you where going with it. But isn't "insider trading" illegal? Wouldn't we see the trade volumes higher than we have if someone was buying up 2 or 3 billion shares?
Very nice. Looks good.
Please explain.
They would announce it. The existing shareholders would be contacted and offered (usually) a slight premium over the market share price. You are not required to accept the offer.
It is possible for them to do the buyback as market buy orders through their transfer agent, but they would be foolish to do that IMO, as it would just cause the market price to shoot up, and the company would end up spending way more money for the same number of shares. And, of course, if the share price shot up like that, everybody and their brother would place a market sell order as soon as the momentum stops and the price started to roll over, which would crash the price back down.
LOL! Lets just do a 945,243 to 1 so every shareholder on record owns one share. We would have like $2500 per share prices then!
Discount (retail) brokers don't allow retail investors to short OTC stocks. Even if you could, brokers charge a per-share price, so you would lose money. It is pointless.
Brokers themselves can do it, but it is generally fruitless, since as you mentioned the risk is huge.
The $250M was a three years out projected valuation. The current valuation was $24 to $28M. So snoof77 was pretty close IMO.
Yes, there were a lot of "fractionals" this morning at 0.00075 as broker-to-broker trades (they need to make money too). Not technically T-trades though, as those would occur after market close, or outside of normal trading hours.
Of course, on super high volume days, the brokers may trade amongst each other during market hours at the very end of the day, and not report it until after market close, and then it would become a "T-trade".
The problem here (my opinion) is because this was a reverse merger, the existing publicly traded company (Plandai) already had its own share structure and valuation.
When Good Salt LLC (ByoPanet Et. al.) reverse merged in, it had it's own valuation, but because Plandai's share structure does not reflect the valuation of ByoPlanet, we are kind of stuck in the same share price range we had before the merger.
Normally though, the only time a company valuation is directly linked to the share price is when they first sit down with the SEC and come up with a share price, and share structure, based on the valuation of the company. After that the share price is all driven by news, timing of news, and changes to the share structure.
But here, the public company already existed, so the share price / valuation / share structure is really out of whack.
Do we know what the profit margin is on the H2 sprayers? My guess is the profit margin on the chemicals is probably better, and people need the chemicals for their sprayers, so the company (in the long run) probably will make more money on chemical sales IMO.
If they sold something like vacuum cleaners (modern bag-less ones), they wouldn't get the continuous purchases of supplies like ByoPlanet is with their sprayer products. Get the buyers hooked on chemicals, and the company keeps making money.
Corptech Holding Inc. is the name they talked about changing to back in 2019.
Here is the old press release-
https://www.globenewswire.com/en/news-release/2019/03/06/1748737/0/en/Crednology-Holding-Corp-Provides-Clarity.html
I won't hold my breath about this ever going anywhere though.
I would be nice. Often with share buybacks the company will offer a slight premium, so you could make more than the current market share price.
But, if you sell those shares, then, well, you own less shares. Luckily you don't need to accept their offer for your shares.
They could do it as a market buy order, but that would cost the company more money. It would cause a huge price spike though.
I don't see the point to wasting a bunch of money though. If they do the name / ticker change along with the RS (reduce OS and AS), and do it all at the same time, then we should be fine. If they do an RS at some random time, then the price will crash, and the share buyback won't help existing shareholders IMO.
Ask Rick how many millions of dollars he is willing to spend to reduce the OS to a reasonable value.
That is my thought. It is not uncommon from my experience. Immediately after a restructuring event that is accompanied by a name /ticker change, the share price tends to spike, people take profits, and the share price relaxes down to some lower level and stabilizes at some new bottom.
I agree. No matter the news, no matter the weight of that news, our SS at the moment is holding us back here.
Even with consistent news (which they have presented improperly IMO since they are pushing it through Accesswire only and not OTC disclosure & news service along with Accesswire) we have not seen the steady gains we should be. Consistent good news should be moving us up in a step-wise fashion with each good news event.
It would need to be far higher to get anywhere good. Like at least 250 to 1. I think they will do it when they do the name / ticker change in my opinion. Expect a 50 to 60% relaxation after that, but we would still be in OTCQB land.
Of course, it's a good market to be in.
They can't extrapolate in a useful way, so I am just going by the current valuation numbers of $24M to $28M, rather than the projected.
Yep. She'll run at some point.
Yeah, definitely some institutional action going on. Big blocks of nice round numbers moving around on the L2 is a dead giveaway.
I didn't say it applied here, I was being facetious. You could tell it was on a downward trend already yesterday based on the ask size piling up.
It's just an old saying, like - "buy low, sell high".
Buy the rumor, sell the news, as the old saying goes.
Wow. People moving buy orders down to 6 now.
Should see some movement tomorrow and Friday. Really need that name / ticker change though. The SEC still sees ByoPlanet as a "subsidiary", but that is just SEC semantics, since the publicly traded company is called Plandai, they need to change the name to really be ByoPlanet.
Go $PLPL!
Me too. I think the name / ticker change would help.
Looking forward to a name / ticker change. New name, new company, new profits.
Current valuation of ByoPlanet is $24M to $28M based on last twelve months pro forma financials. The $222M to $267M is the 3 year forward projected valuation.
Pretty sweet. But the operating income was negative last FYE (based on gross income of $14,328). Hopefully they can improve that with better exposure as a public company.
Also, that was the 3 year forward projection of the valuation. Current valuation is $24M to $28M.
If you email them again, please tell them to put out PR's through OTC disclosure & news service as well as Accesswire. The last three were only through Accesswire, so are not as visible as they should be.
Ask size is piling up fast here. Some buy orders moved down to 7 earlier. Need good news tomorrow.
If the handles are on a colander, with shares dripping out the bottom, then yes.
Movin' up in the world. Now we need some news.