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Re: drugmanrx post# 60490

Monday, 05/23/2022 1:46:29 PM

Monday, May 23, 2022 1:46:29 PM

Post# of 81878
Unless the company does a reverse to offer potential investors who are offering direct funding to the company as an upside or an equity kicker position in the company and at that point they would be locked in and could not sell shares similar to Nick shares not being liquid and considered insider shares.
So they would use the equity from giving shares to an investor as collateral against their investment and no dilution and we all win.
Only way it could be dilution is if investor decides or is able to sell their shares in the market. IMO

I feel the reason companies use stock as collateral is to acquire or bring in investment dollars. If they have investor coming in I don't think the investor would want to dilute the company without hurting themselves in the process.
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