TheGlobe.com Inc (TGLO)

[Toxic Avenger]

So many people seem to rely on me to correct errors. It's heartening.

Delfin does not have a CUSIP as they are not a public company. But the can apply to change the name and symbol at any point. Won't change a thing, but a new symbol will generate a new CUSIP. Of course the inevitable reverse split will also generate a new CUSIP.

Taking control of a company's assets and votes via super-voting preferred shares is a very common stinky pinkie game. It's not something anyone does to try and raise capital. Going to large investors and saying, "We want you to value the company at a huge valuation, but we'll keep control of the stock and we get first dibs on assets" would never fly.

Let's say Delfin did as you say and Warren Buffet had dementia and bought 400 million shares for $1 each. What would stop Delfin from declaring a preferred dividend of $400 million? Yeah, they'd get sued, but they would have the authority to do it with a majority of votes (Delfin's preferred, wink, wink) approving it.

Bottom line, Delfin has already made a lot of people rich via TGLO. Now it's just a question of how much longer the price can hold up. That depends largely on when (and if) Delfin wants to raise capital, at which time they'll have to do a reverse split, as outlined here:

What I expect we'll see over time is:
- reverse split to enable more shares to be issued
- do a secondary offering to raise capital
- use some of the raised capital to buy Delfin assets

Problem is, new investors who would buy the secondary aren't going to do so at a valuation of $25 million+ for a shell with no assets. And Delfin isn't going to transfer net assets into a shell, immediately discounting their value to Delfin by 29%. Most likely the secondary pricing will be very close to the money raised. At best the TGLO shell will be valued at a few million dollars - likely less.
For example, Delfin might do 1:10 reverse split, then sell 400 million new shares at 10 cents each, raising $40 million. The company would then have a market cap of $44 million and net assets of $40 million. Some (or all) of that $40 million would be used to buy Delfin assets. Over time, the 10 cent shares might move up to 20 cents (valuing the company at roughly 2X its NAV), but they're not going to $1 or more until there's some shot at revenues and profits - and that's years and more secondary offerings off.