Midsummer's shares came from dividends paid to them (in leiu of cash) by the company
AMAZINGLY RARE HERE. YOU ARE CORRECT!
..The CEO of Pharmachem, (the ingredients co.) obtained apx. 7M of his shares also from dividends and then outrightly purchased his other nearly 8M shares on the open market..
WRONG. (NOW WE ARE BACK TO NORMAL)
Midsummer is now in the process of testing the waters with other Preferred investors to see if they want to all join forces and redeem their Preferred Shares into Common shares and even purchase more shares if necessary..
OF COURSE SOMEHOW HOW DIDN'T MENTION THAT IN THE SAME LINE IT SAYS ABOUT THE POSSIBILITY OF SELLING ITS SHARES? DID YOU SOMEHOW NOT SEE THAT?
I believe this is in hopes of gaining the 51% majority of Common Shares needed to take over management of the company..
Unless the company can pay the balance of their qt. dividends in cash (at the current share price) the company will be issuing the Preferred Shareholders apx. another 100,000 shares as dividends by 11/11/11 when the redemption comes due..
WRONG, IT'S NOT 11/11/11. AND THERE IS NO "HOPES" NEEDED. GETTING 10%-20% DILUTION IN SHARES EACH QUARTER IS EVENTUALLY GOING TO MEAN OVER 50% OWNERSHIP IF THEY SIMPLY HOLD THE SHARES. KNOWLEDGEABLE INVESTORS SAW THIS COMING YEARS AGO, AND SOLD.
In my opinion, the company should quickly offer shares to stockholders at bargain prices to dilute the stock, thus preventing the consortium of Preferred Share investors from gaining the 51% majority needed to takeove control of the company..
WHERE IS THIS MONEY GOING TO COME FROM? CERTAINLY NOT YOU. WHERE ARE THE BUYERS GOING TO COME FROM? DO YOU ACTUALLY BELIEVE ANY SHAREHOLDER BESIDES YOU WOULD WELCOME OPEN MAJOR DILUTION OF THEIR HOLDINGS?
AND I SUPPOSE SOMEHOW YOU ARE NOT AWARE OF THE CLAUSE IN THE SERIES J AGREEMENT THAT SPECIFICALLY COVERS THIS, AND HOW IT WOULD WORK TO SERIES J'S ADVANTAGE, CORRECT?
DO YOU UNDERSTAND THAT EVEN RAISING $18 MILLION AT TODAY'S PRICES MEANS HAVING TO ISSUE ALMOST A BILLION FREAKING SHARES, PRACTICALLY WIPING OUR YOUR ENTIRE EQUITY IN YOUR EXISTING SHARES? LOL
Another way would be to get a 3rd party "White Squire" to buy a large amount of stock (but not controlling interest) to prevent any "hostile takeover"..
ANOTHER DREAM? WHAT'S IN IT FOR THEM? AND HOW DOES THAT BENEFIT STOCKHOLDERS? YOU UNDERSTAND THOSE TWO INTERESTS COULD NOT BE MORE OPPOSITE, CORRECT?
AI
