Time for tonights securities lesson. I am assuming that the S8 plan has been designed to carefully increase the public float shares without hurting trading. If the company wants to uplift, an absolute requirement is 1,000,000 shares in the public float. Right now, there are 370K or so. How do you increase the float then? Let notes convert at 35% discount to markets and let those shares slam down the PPS? Thats an OTC thing. Do you take a discounted note and file an S1 and then in 4 months after the S1 is effective, slam down the market again? No, way too many shares hitting the market in those 2 scenarios. I think what the company is doing is brilliant. First, you have to STOP looking into their pockets. Thats just wrong. You need to start looking at the mechanics of the S8 and how that fits into the larger goals.
So when those S8 shares are ISSUED, they automatically become part of, and account to, the public float. Assuming if the company issued those shares to insiders, let's just assume that, they are all still bound by Rule 144, and they already have lock ups in place on their other shares. I don;t expect to see ANY Form 4's or Form 144's. You think if the company is trying to uplift that insiders would even sell? Thats kind of sick to believe - but a lot of you are so use to OTC scams, that you probably expect this to screw you some how.
Its also my opinion that this may be part of the companies overall plan with its bankers. There is no other way - read this text again - NO OTHER WAY to increase the float without devastating the stock. But everyone knee-jerk reaction is to think SCAM, because all posters do is look into the pockets of the insiders (which I would normally agree on the OTC, is suspicious) rather than look objectively what has to be accomplished to uplift.
