BEST NEWS YET -> NO DILUTION!!
This is the best thing John Mercadante and his team could have done. Why? Well some of these things have been said before but to reiterate:
1) They are using these shares to make acquisitions. This lessens the potential debt burden associated with fast growth and acquisitions, since they will have to come to the closing of each acquisition with much less cash. It also incentivizes the mgmt teams of these new units to PERFORM, and be rewarded for being part of contributing to the huge growth phase they are currently undergoing.
2) NOT DILUTION - With each new stock share swap with new acquisitions, we are getting better than $1 for $1 value in terms of the assets we receive, the current revenues that will now be added to our numbers and the future potential revenues, so the net change in TLSS is not a dilution of current stockholder value because TLSS's Market cap is going up with each acquisition.
3) Holding Period 12 Months: These awarded stock / options can not be sold for a minimum 12 months after being awarded - John Mercadante is minimizing the potential for any dilution. This is not considered dilution if they can't be sold and/or if you are receiving a value (assets and revenues) in exchange for the shares. It gives the market time to assess the market cap of each acquisition and potential revenues that come with that.
4) It's no secret that Amazon is eyeing TLSS for acquisition at cheap $$. By Issueing these new shares, it protects the company for any potential for an early takeover when the stock price is now VERY undervalued. They have been accumulating and this is a big risk. We don't want a takeover now, for we will make pennies on the dollar in terms of potential for this company. Another investor stated "Management is being proactive to maintain control to merge/sell on their terms for the highest return; as opposed to being bought out on the cheap due to the current undervalued share price." and they truly hit the nail on the head!
5) Each new Acquisition is bringing us new territories and an infrastructure in place to expand the TLSS Amazon prime contracts (and other contracts) into new areas. Not only do we gain new contracts from these new acquisitions that we can expand into the existing network, but these new companies can do vice versa and start doing Amazon Prime deliveries in new territories we are not currently in. This is a huge multiplier effect on the potential revenues and economies of scale.
