Peacock 09.17.07 PR CONFIRMS 564mil post-merger O/S.
"Current Franchise Capital shareholders are not expected to be required to tender shares as part of the close of the transaction. Aero Exhaust shareholders will, as part of the close, tender their shares of Aero Exhaust and will be issued restricted common stock of the public company..."
Understanding investment vocabulary is necessary for proper DD.
"RESTRICTED STOCK" and "AUTHORIZED STOCK" are terms of art.
RESTRICTED = stock that has already been issued and is outstanding, already part of the current O/S.
AUTHORIZED = not issued and outstanding, not part of the O/S.
The PR quoted above further confirms that AERO shareholders received all of the stock due to them directly from the pre-closing O/S.
There was no further dilution of the O/S at the closing of the merger.
The OCT 1, 2007 10K states that the O/S was 964,129,838.
400,000,000 shares were retired and cancelled.
The current O/S is 564,129,838.
The reason some of us believe there will be a short squeeze relates to the fact that Peacock "anticipated" that AERO would be the majority shareholder of FCCN post-merger. So AERO probably holds more than half of the O/S which leaves less than 285,000,000 shares to be publicly traded.
If the share count at this board was even relatively close to being accurate, then SOMEBODY HAS BEEN NAKED SHORTING AND IS NOW CAUGHT WITH NO CLOTHES AND NO SHARES.
Hence, yesterday, just after DD of this nature was posted to this board, trading stopped with no shares publicly exchanged for 29 minutes.
