Art,
Well this kind of lends support to my previous theory, that perhaps whomever got a block of stock (that 113MM shares added to the float) is probably the seller... (perhaps a financier, partner, acquisition target, or whomever)
I would have to agree that it is a financier dumping shares into the float. Really no doubt about that given the trading volume and total lack of price movement.
and separate from the company itself,
Has to be separate from the company, the company can not dump shares directly into the float. It has to go through a third party.
this isn't endless dilution from the company. It's a finite amount of shares, looking like it was doled out to whomever got it back on 1/30 or immediately before.
No it doesn't mean this at all. Until they file some sort of financial report disclosing what kind of debt they have, convertibles, what their burn rate is. It could very well be toxic financing.
I wonder if someone has been buying their block of shares on the open market, and NITE and BRGE have been keeping the pps in the "agreed to" range for the transactions to take place..
Very doubtful, if there is an "agreed" price for a large block of shares. It would not be coming out in 100-250k pieces. They would simply do the transaction off market and save all the brokerage fees. Also no one could get in the way of the transaction.
From Palmer's email, it would seem that the share structure is the same as it was last week. Will send a follow up to confirm that, but given his "company not selling" theme, it would make sense that it's the same.
Here are some questions to ask Palmer that will tell everyone here what they can expect longer term.
1. What debt does the company have at the moment and what are the terms of that debt. Convertible into stock and if so at what price.
2. What is the total cash burn going to be until the company becomes profitable and how is that going to be financed?
3. Will you be issuing any more stock or taking on any more debt in the next 6 months.
4. When are you going to file a financial report?
5. Is your joint venture partner in fact Golden telecom the publicly traded NASDAQ or are you just in the same building as they are?
If he fails to answer any of these questions. Well, you know what to do.
