It has to do with float which is relative to insider holdings and the conditions of their capital raising activities.
Float (Free Trading)
http://www.investopedia.com/terms/f/float.asp
Restricted Stock
http://www.investopedia.com/terms/r/restrictedstock.asp
Private Placement
http://www.investopedia.com/terms/p/privateplacement.asp
Quote from 07 Annual report
"As of the end of our fiscal year, December 31, 2007 we had 54,948,715 shares of common stock issued and outstanding, held by approximately 222 shareholders of record. There were 653 beneficial owners. Of the 54,948,715 issued and outstanding, 24,896,203 were free trading."
Being a PS stock, there is little to no required disclosure on financing. There is typically only a blunt FYI on annual reports.
Say a hypothetical private financing block sell (simplest transaction) is made at a discounted rate of 50% on a (0.02 avg PPS) in February. The sale immediately yields the company $200,000 in return for 20M shares.
The company, to protect the stock price, places restrictions on the 20M shares. The new shares may not be traded until a specified date, days pass, or price per share (PPS) reaches a certain amount.
It is a legal transaction; so there are many variations, and any kind of stipulation can be made.[half free when X occurs - rest when Y occurs, only to be sold on Fridays which are the 13th:), etc]
This is definitely normal. FYI, R&D companies that are expecting a significant boom, like PSPM, may have a six month holds or more.
In previous interviews, Vanatta has stated annual operating costs in the R&D phase of only ~$1M annually. Due to the high caliber of new hire/consults, the costs associated with the addition of Mr. Clark, services of Alston + Bird LLP and "engagement" or Deemer, Dana and Froehle LLP will rightly be substantial. So, we'll immediately see the admin costs rise 70% or greater IMO. Which brings PSPM back to capital raising until a deal is done. (Note change in issued since Dec.)
Hope this helps.
ABN
Read everyone's posts with caution and treat as...
Float (Free Trading)
http://www.investopedia.com/terms/f/float.asp
Restricted Stock
http://www.investopedia.com/terms/r/restrictedstock.asp
Private Placement
http://www.investopedia.com/terms/p/privateplacement.asp
Quote from 07 Annual report
"As of the end of our fiscal year, December 31, 2007 we had 54,948,715 shares of common stock issued and outstanding, held by approximately 222 shareholders of record. There were 653 beneficial owners. Of the 54,948,715 issued and outstanding, 24,896,203 were free trading."
Being a PS stock, there is little to no required disclosure on financing. There is typically only a blunt FYI on annual reports.
Say a hypothetical private financing block sell (simplest transaction) is made at a discounted rate of 50% on a (0.02 avg PPS) in February. The sale immediately yields the company $200,000 in return for 20M shares.
The company, to protect the stock price, places restrictions on the 20M shares. The new shares may not be traded until a specified date, days pass, or price per share (PPS) reaches a certain amount.
It is a legal transaction; so there are many variations, and any kind of stipulation can be made.[half free when X occurs - rest when Y occurs, only to be sold on Fridays which are the 13th:), etc]
This is definitely normal. FYI, R&D companies that are expecting a significant boom, like PSPM, may have a six month holds or more.
In previous interviews, Vanatta has stated annual operating costs in the R&D phase of only ~$1M annually. Due to the high caliber of new hire/consults, the costs associated with the addition of Mr. Clark, services of Alston + Bird LLP and "engagement" or Deemer, Dana and Froehle LLP will rightly be substantial. So, we'll immediately see the admin costs rise 70% or greater IMO. Which brings PSPM back to capital raising until a deal is done. (Note change in issued since Dec.)
Hope this helps.
ABN
Read everyone's posts with caution and treat as...
Read everyone's posts with caution and treat as...
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