Questions... This is one poorly written, hard to understand press release...it promises a lot (and I hope it can deliver) but gives no real explanation as to the how... for example:
Investors are advised that due to the absolute requirement to attain higher exchange status and to fund its acquisitions, the number of issued shares will increase.
These shares will be held as collateral to raise the cash requirements for acquisitions and exchange progression,
will be non-dilutable, and will be returned to treasury after the loan term and retired. The available public float will not increase from its current figure, but will be decreased to 20M shares. Any increase in non-dilutable shares issued to accommodate expansion will be matched by increased revenue, profit, improved balance sheet and asset value and
increased shareholder equity for exchange progression.
How will shares in public float be decreased? Is this a share buy back? How much will that cost the company. If not a buy back, how? Will there be a reverse split? (some reverse splits have worked well to enable china companies to uplist - they don't seem to be received as well for US companies)
Any increase...refers back to the will increase...
"will be matched by increased revenue"...? Any is possible, will is certain...which is it?
"...Any increase in non-dilutable shares issued to accommodate expansion will be matched by increased revenue, profit, improved balance sheet and asset value and increased shareholder equity for exchange progression."
Do they mean eventually? Certainly it is not automatic. Are they saying with these funds we can invest in the business to make more money? ..."will be matched by increased revenue, profit, improved balance sheet and asset value"... How will it be matched? Is there someone who gives matching grants to companies who increase their shares to use as collateral? - or is it the hope that this will be the case?
I am long EIGH and certainly wish to see the company succeed but do not find ambiguous press releases encouraging... I certainly do not fully understand what is being said. Maybe someone can explain it better...
