GreenBox POS (GBOX)

[nsomniyak]

You are overcomplicating it. There is no way to implement a "sliding scale".

Here's my take. Just thinking out loud - I might have it wrong.

You get .35 shares in the spin off if you are a shareholder of record COB 8/16. You get .20 shares in the spinoff if you are a shareholder of record as of the second record date (other than if you got the .35 on the first record date). While they say "no shareholder will get .55 shares" that really needs to be applied on a lot-by-lot basis. If you hold the same shares on 8/16 and record-date-2, you only get the .35 spinoff shares. If you buy new shares between 8/16 and record-date-2, you get the .20 on those shares.

Note - GBOX shareholders already own the spin-off - those assets simply have not been separated and spun off yet. There are no new assets being given to GBOX shareholders. Other things equal, one would expect the residual value of GBOX shares to decline by the value attached to .35 spinoff shares on 8/16. The value proposition to GBOX shareholders is not new assets, but rather that "the sum of the parts will be greater than the whole" - in other words, that separating the two pieces will create value by allowing each to trade on its own merits. While often true, this is usually a longer term proposition as it takes a while for the pieces to find their own markets and price levels.

I am not sure that the second distribution is actually allowable. It seems intended to provide an incentive for people not to dump after the first distribution, or to buy new shares after that point in time. However - if I hold GBOX as of the first distribution, I am entitled to a pro-rata share of ALL the spinoff assets, with no further holding period required. Period. UNLESS there is a further transfer of specific assets to the spinoff after the initial distribution I would think they are setting themselves up for a class action suit. I don't know that they can legally reserve part of the spinoff asset base for people who purchase between 8/16 and record date 2. I suspect that they can't.

It's complicated. I can wait.