DD Support Board and Research Team

[shajandr]

Thank you and InnaGrille and others for replying to my kwestshun. The answer makes sense.

So I was wrong about the restart of the holding period upon CONversion of CONvertible preferred shares. One can tack back to the date of issuance of the original CONvertible preferred shares.

Thanks all for clearing that up for me. My error.

Butt, as for the assertion that an acquiring company can simply pay for the acquisition with free-trading shares without an effective reg statement is correct (so it seems).

Thus, any issuer acquiring a company and paying in whole or in part in shares, whether CONvertible preferred or common shares, does NOTT circumvent the requirement for either (1) an effective reg statement covering those shares, or (2) the recipient holding those shares (CONverted or nott) for the relevant 6 or 12 munff holding period in order to utilize the Rule 144 exemption (also requiring an atty opinion letter for delegending).

So an issuer acquiring an crony's biz entity is NOTT a way to 'pay for it with free-trading shares'. Instead, if payment is made in shares nott covered under an effective reg statement, whatever shares are paid to the selling party are restricted - with~OUTT regard to whether they are common of CONvertible preferred series.

Which was the point I was originally making in reply to Monksdream's post.

Monkdream's original post: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150040558

My reply: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150043060

Monksdream's sur-reply: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150043931

The statement that "You [the seller of the acquired entity] get freely trading shares you can dump quickly." is incorrect. The 6/12 munff holding period to delegend remains. No 'dump quickly' unless one CONsiders holding a pennyscam stock for 6 months to be 'quick'.