Replies to post #293482 on Green Energy Enterprises Inc. (GYOG)

[SunScents]

I'm not too clear on this whole 504 thing.

The Authorized Share Count is 2.5 billion. Can the 504's or anything else cause the company to issue more shares than that? And if so, how can that happen?

[Flyguy]

WOOHOO KEEP IT UP QASP!!!
we are up sooo much now I cant keep track!
if this is selling shares then they have defied the rest of the market! LMAO!!!
GO QASP

[Manti]

I frankly don't see how this can end well for common shareholders.

It's much the same as what happened with the last 1000:1 RS, although it may not be quite as bad this time.

FACT: The company only received $53,000 from the last round of 504's. (It probably cost them over a billion shares)

FACT: Operationally they have ALWAYS lost money with the flight school.

Now, assuming the OS is somewhere around 2 billion right now, and that the new business venture will be around 50% of the company, she'll need another 2 billion shares to close the deal.

Now, IF the company doesn't need cash (highly unlikely), she could get by with a 2:1 rs and give them half of the shares. Of course, I wouldn't take them myself, because the series A preferred shares are all that matter...

If the company needs cash capital, the RS will probably be 50:1 or more to allow for dilution while raising capital.

Bottom line, the best scenario I see is a 2:1 rs, but I consider that highly unlikely considering she's already announced expansion plans. Heck, the rs could well be 200:1 or thereabouts.