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Re: ORrep8 post# 57340

Wednesday, 07/26/2017 1:03:18 AM

Wednesday, July 26, 2017 1:03:18 AM

Post# of 140510
Love your analogy! Spot on. There can be some real reasons that a company sits on the side lines until a certain point to "officially enter" There could be buying of common stock or buying at the offerings. Setting up family members well before "officially" being involved. If you look at the math, it is actually possible to help pay for most the purchase of Titan by not buying now. No official commitment needed. The purchase doesn't affect their stock perception and thus price with a product that might be viewed as financially draining and a couple of years out on the major trading indexes.
A company that is 10% ownership puts them at say 30 million shares and another 30 million of warrants. If the Titan is sold at a a huge price, they automatically get a 20% discount without all the under table dealings. Not including "family" options....
The PPS of a purchasing company is much more favorable to their investors if they purchase a product that is viewed as ready to go. So a 20% discount plus possibly saving a 10% loss in value. If written well, I imagine the conversion of stock to a parent/purchasing company would also save another huge % in taxes on any huge gains. Not to mention the deduction of a larger purchase!
Thoughts to ponder....