Jack that was my point, an authorized share is not part of the float, but can be added to the float, ie TEVE decides to sell more shares to raise funds, that just takes SEC approval and usually a vote by the board of directors. This prevents them from going into debt while gaining funds from the sale. As we both know, the float is traded amongst investors and does not add a dime to TEVE coffers. Problem is as we've discussed before adding more shares, just like this deal will dilute current investors shares. Not my words its in the proxy.
Read the Proxy. This is what I gather. Mr Lenfest is getting 5 million dollars of his 25 million. Other 20 million being turned into shares, thus the increase from 49,000,000 to over 100 million. I gather Mr Lenfest is removing himself from TEVE, getting what he can, and thereby accepting the deal of debt to shares. Any money he does not get from this transaction becomes a tax deduction for him, created as an investment loss. Again read the proxy. Sounds like the CEO and Minority directors are about to take charge once this transaction is complete. Thereby, eliminating debt on paper as the proxy says to make it more attractive to other investors. Again that tells me Mr Lenfest is moving on, otherwise why do the transaction, why make it attractive to "other" investors? And by investors they are talking about lending institutions, not stock owners. I believe the Lenfest pool is drying up and it's now time for TEVE to swim on its own. I'm not saying they will sink, they may do great, but at this time please read all of the proxy, and you will see.
From the proxy to enforce my point:
In addition for purposes of consummating the Debt Conversion Agreement, the Board of Directors also believes that it is in the best interests of TelVue and its stockholders to increase the number of authorized shares of Common Stock in order to provide additional shares that could be issued for raising of additional equity capital or other financing activities, stock dividends or the exercise of stock options and to provide additional shares that could be issued in business combinations and to better position the Company for future trading should a transaction be entered into and completed. Approval of the proposal would also permit additional shares of stock to be issued without the expense and delay of a stockholders’ meeting, which could delay or prevent the consummation of a transaction
