![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Tuesday, September 25, 2012 1:54:02 AM
The company has the right to sell "restricted" stock to the financer (not lender - theyre getting equity in exchange for the capital) who then profits from share increases by dumping the shares back onto the market.
Most legitimate deals of this nature offer some shareholder protections like price floors and restricted share requirements. They also usually are transferred at market price.
But as per our PR the transactions are to occur below market price - setting the financer up for instant profit when they flip the shares.
Whether they claim to be giving away restricted shares or not. IMO theres going to be a loophole or limited restriction time because no financial firm would expose themselves to that much risk by buying now and waiting 6-12 months to cash in on a security thats dropped well over 90% in a years time.
Im sure you know this, more for the general board.
If im wrong on any part feel free to correct me, but thats what 2 minutes of googling got me in addition to some applied logic.
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM