IDD. Regarding HAON's buyback, your statement "If a company funds a buyback by issuing new shares, the new shares must be issued for the purpose for funding the buyback" may need a bit of clarification.
It is confusing. I believe you are referring to issuing "preferred" shares, not common shares as part of the A/S.
Use of the word 'funds' is also confusing. I also favor use of preferred shares as a means of reducing O/S and float. But I see the maneuver different from you (or I do not understand your explanation clearly). I do not see the need for funds other than on paper. Nothing is bought. What I understand is that preferred shares are issued that represent the 'right' of conversion back to common shares. While these preferred shares are NOT converted, they do provide the holder an incentive to "hold" rather than convert....either by int/div or set date of converting to a higher share count than 'given up' by being issued the preferred shares. I'll explain.
No funds are involved other than the initial agreement between an existing investor holding massive numbers of common shares (currently in the float and part of the O/S) and the company to exchange one for the other (benefit to do so as written in the preferred share document).
The investor gives back common shares for preferred shares. Different accounting procedures...preferred does not add to O/S until converted at some future date if I am not mistaken (when conversion would have less of a dilutive effect). In the interim, by giving back common shares (and then company terminates), the float and O/S can be dramatically affected w/o ANY cash fund flow.
I think we can agree on the versatility of preferred shares but see their use differently. Please feel free to pick apart my view and educate me on why my scenario can't work or will not be used by the company to raise the pps. Being simple minded, your approach is clearly misunderstood.
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