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Re: Homebrew post# 141927

Wednesday, 04/17/2019 8:57:19 PM

Wednesday, April 17, 2019 8:57:19 PM

Post# of 193129
Here is that version...using a simplified example of an extreme to see how the math works.

Underwriter U buys 1,000,000 shares of offering stock from company C for $1 million.

Company C turns around and acquires Company A for $1 million

Company A turns around and buys 1,000,000 shares of Company C from Underwriter U.

How much “extra” money does Company C have in its bank from this transaction?

Zero.

All they did, in effect was acquire company A for 1,000,000 shares of Company C stock.

Company C DOESN’T own Company A AND have an extra $1 million in the bank.

All Rory did was, in effect, buy a portion of SC with $4 million worth of stock in the offering.

"Harsh reality is always better than false hope"

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