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Re: None

Saturday, 12/06/2008 1:42:58 AM

Saturday, December 06, 2008 1:42:58 AM

Post# of 19383
The problem with being a Corporate Finance guy is that you have to be so devious.. this is creating wealth out of bending the rules and taking something for yourself.

Why is the 500-limit important for # shareholders? Maybe it is a number of shareholders that allows them to delist without permission or something.

So take two rules:

- minimum lot size, designed to encourage liquidity and keep costs down for investors.
- and the above, whatever it is..

and create this financing option.. offering these <99 shareholders an option that makes it attractive for them to sell their shares, and getting to that 500 shareholder limit.

The basis for a class action lawsuit would be: this is discrimination in favor of those shareholders that have less than 99 shares. They are getting a good deal, given the current share price. Why should they get such a good deal and everyone else, who has invested in this company and gotten it to whee it is. get screwed (likely). I would be pissed off if I were a shareholder at this point. Unless I had less than 99 shares and just wanted to buy a few cases of nBeer.

I could never be this devious.