It just occurred to me that Litar might be on to something with one of his posts but I am sure he didnt mean to be in this way. If they merge there will be a conversion of shares. If that takes place then those with small amounts of shares will lose some equity. This will of course depend on pps of UATG at the time, pps of merging company, deal structure and cap structure of each company.
The last one is interesting because its exactly what they are doing now. I am not worried about deal structure because if they wanted to get rid of shareholders then they would have taken my advice and done a rs so obviously this guy is trying to protect shareholders. It would have been easier, faster and cheaper to a rs and would have freed up more shares for dilution if thats what they were about.
You would save the increase to a/s for last because it will be the one thing that would be made public and we would see it. Then, we would all flip out and complain, shorters would come in and price would drop. This is helpful to company because the lower the price the more extreme the conversion. Like I said yesterday, this is why he isnt worried as much about the pps. To be honest, the pps might be exactly where he wants it which is scary to think about how on top of things you would need to be to manage this and make it happen. That is chess on a whole new level.
My point is that anyone with less than say a million shares would potentially be vulnerable but of course this all depends on many variables so calculating how many shares someone would need is next to impossible.
This makes a lot of sense to me because if any of us were running a company and wanted to protect as many shareholders as possible while getting rid of some of the toxic equity this would be a way to do it in part. If youre not willing to use the nuclear options (a r/s) and get rid of all of them while accepting that some innocent investors might be effected as well then you would have to be ok with getting some of them instead.
I am just guessing but this guy is very measured and is a planner. The fact that he thought this far ahead through so many layers is impressive. I can only imagine what they have planned for the next two years. Of course thats if my hunch is correct.
Regardless, I am buying more just in case. This could be a really big win
