April 1, 2014
Ive seen a lot of confusion on here recently about the company's latest financials and the restricted shares that become available on April 1. So now is the time to clear some misinformation.
1) The billion or so shares that become available on the 1st are restricted stock. Restricted stock is a security that has already been issued and thus has already been counted in the company's total 3.5B shares. Restricted stock is typically used as a method of payment to employees or partners in exchange for services when a company does not have the cash to pay outright. This does not result in dilution of any kind, and for all intents and purposes this is just normal stock that is not able to be sold until the day it is released, in this case April 1, 2014.
2) Coincidentally, also on April 1, the company is expected to receive their license to grow and thus begin their operations. Because of this, the share price is likely to shoot through the roof that day as new investors with big cash are fully convinced of this company's profit potential. Volume of shares traded that day will be huge as people fight hand over fist to get a piece of the action.
3) If the entities holding these billion shares of restricted stock all sold their shares on a normal trading day, the share price would crash and burn. However, they will be selling their shares on or later than April 1st, when demand is at an all time high. Even if all 1B shares were to be sold that day, more than likely there will be thousands of people dying to take them off their hands. This means that the share price would essentially be protected from the mass sell-off of shares.
Restricting these shares essentially is an insurance policy to pay a lot of money to employees/partners in securities, without that insane amount of shares crashing the stock price when those entities chose to sell their massive holdings.
This is a very well thought-out strategy that enabled FITX to purchase a lot of assets with their securities, while simultaneously covering all of their bases down the road and ensuring the longevity of their stock. Plans this smart and forward thinking are a very positive indicator of their strong fundamentals.
