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Re: Broadway1430 post# 36294

Wednesday, 01/05/2022 2:47:03 PM

Wednesday, January 05, 2022 2:47:03 PM

Post# of 52051
Broadway, personally I would like to see IQST structure a subsidiary IPO with stock as the principal repayment method where the IB is allotted X amount of shares to push the new subsidiary forward. This gives the IB more control over the rewards of their investment by "selling" the new IPO to Institutions which propels the price up. But then again, they could always guarantee $50 mil in stock to the IB from the existing float, and that would quickly propel the price...imagine, the existing float falls to 30-40% of OS...if they did that, they would have to structure sale points for the IB so they didn't turn and flood the market which would drop the price dramatically.

We have divisions in this company, and while together they are worth X, individually they may be worth substantially more, even though they are still part of the parent company. Maybe the IB has an interest in 1, 2 or 3 areas, but not the others, and wants to spin off a new IPO on specific ones.

Aside from that, they may also guarantee X shares to the IB as part of the deal at Y price (guaranteed). Companies do this a lot with profit sharing and bonus scenarios via stock options. this gives the IB latitude to purchase shares on the market at reduced rates.

At this point, it's anyone's guess on how they are going to structure the deal...these were some of my thoughts.

Keep in mind, I am spitballing on this...If I were that good at pre-interpretation, I would've reached out to them and told them not to say anything pre New Years Eve...lol
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