Let's face it. The majority of the share recipients are farmers, workers and contractors. They may not even know what OTCBB or a broker means. How are these guys supposed to sell shares by themselves?
OTOH I doubt that Solomon can afford to let the shares fall to below 25c as some shorts here were predicting . B/c he will have to pay the difference b/w that price and the pre-agreed price. I imagine the only way he can "sell" the idea of paying these guys by shares is to guarantee them a fair price, say based on P/E of 1.5 or a P/E based on VWAS of past 6 months. Something like: "look, our stock usually trades at an average price of 1.5x- 2x the current earnings per year although it will be up and down all the time. But our earnings is increasing rapidly, so 6 months from now, we expect to earn per year (say) 37c per share instead of 27c currently. I cannot tell you what our stock will trade at 6 months from today when you get your shares but I am wiling to pay you a guaranteed price per share based on 1.5x 0.37=0.56/sh. And you donot even need to worry about selling the shares. We" ll take care of it". Something of that nature.This will make the provider happy knowing that his shares will be worth more in 6 months than today based on future earnings. Otherwise I can't see how someone will accept to be paid in shares not knowing how much they will be worth on the market 6 months from now and how to sell them w/o hiring a lawyer.
Point is how does Co. support the PPS with all these millions of shares hitting the market at regular intervals? Otherwise it may go into a freefall. Makes sense? Sorry to keep coming back on the topic of the financing shares but it's really amazing to see this happen before your eyes and the PPS is still standing its ground month after month, quarter after quarter.
AI
