Why you shouldn't get your panties in a bunch over these share conversions:
These conversions are a result of the buyout agreement between David Lewis and DrJ regarding TXTM. Now to keep things in context we must look as things as they were when this agreement was initially signed, and the reasonable expectations of both parties that led them to enter this agreement.
First, this isn't about shares this is about expected or anticipated value that these shares represent.
The announcement of the acquisition was made on 6/13/22. The month prior, TXTM was trading in the .0018-.0028 range.
Logically both parties expected the price to rise substantially or the deal would not have been entered to by DL. As it stands now, DL would be a sheer lunatic to sell shares for less than even the market value of when he entered the Contract.
This unfortunate situation however give DJ as ripe opportunity to retire the equivalent amount of float shares at a severe discount of where the expected price would have been had the CE not been applied. This is because he can remove the surplus from the market at a SUBSTANTIALLY lower amount n after CE comes off than if he had injected more valuation. Why work against yourself?
I personally wouldn't care if when all is said and done the OS will be equal to the AS, at this point it doesn't matter. Share will be removed here as DJ mentioned last year in the shareholder conference.
Now he can remove even more as the other shares have been converted.
What lies on the other side of the valuation equation will make all the difference. Dividing by 8 or 10 will make little difference in the short or long term.
GLTU
