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Re: integral post# 95900

Wednesday, 09/16/2015 5:54:41 PM

Wednesday, September 16, 2015 5:54:41 PM

Post# of 221908
"How does an issuer print free trading shares for stock promotion purposes?"

Well, in LOCH (Loch-Harris), the company contacted most of its PP investors who had shares issued 12 months or more previously and offered them a 2-for-1 or a 3-for-1 deal to exchange the PPers' delegended, free-trading shares for new-issued restricted shares the company issued them on a 2-fer or 3-fer-1 basis.

The free-trading shares were then used to pay promoters, nott retired to the company treasury.

I don't know exactly the details of whether the shares were ever technically in the company's name - it's possibly the PPers' shares were handled by the TA as a direct transfer from PPers to promoters, with the company kind of brokering this deal.

Nott sure how it worked in detail, butt bottom line the company bought back free-trading shares from PPers with double or triple issuance of restricted shares and the free-trading shares were then used to compensate promoters.

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