"Since all that unrestricted stock was NOT bought on the open market, then where did it come from?
It could only have come from the noteholders. Therefore their stock is NOT restricted."
Huh? What you wrote doesn't make sense. The noteholders are not affiliates since they are lenders, not owners or decision makers. How does this affect the 10% ownership rule to be an affiliate and therefore posess restricted stock?
Definition of Affiliate: An affiliate of an issuer is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such issuer.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.