Door Number 2. AEGY files the S-1 and registers the stock. Then they give it to SKTO, and SKTO will distribute it.
Excellent question about whether that makes SKTO an underwriter. Maybe they'll technically "sell" the stock to SKTO; we'll have to see the registration statement for that. I hope they aren't planning on trying an S-8 for that much stock.
In addition, doesn't the registration go stale if not resold within 134 days of the effectiveness?
I don't have an answer to that, but I don't think so. You see a great many pumpadumps using the original shell to sell stock to seed shareholders. Then they sell the shell to another company and do a reverse merger. Then after awhile the stock starts trading and they do the pump. The seed shareholders dump their stock. Often the process takes more than five months. And we sometimes know the seed shareholders are dumping, because sometimes they're third party payors for the pump.
Though I've never really counted the days.
Oh yes, I don't think Allyn and Benz understand the first thing about what's going on.
None of it really makes any sense. I just don't see the point, except to pump SKTO. But even the SKTO shareholders won't be getting anything valuable out of it, because AEGY stock is chilled, and the company just raised the a/s to 2.5 billion.
