All it takes is one trade for the SG-13 Accredited investor to dump his freely trading shares on the market at 80% of the lowest bid price over the last 30 days. Which means he will get to sell his stock much higher than even the Accredited investors that took part in the private placement of stock under Reg. 506!!!
I wonder why CEO Goodman would do a reg D 506 for a little under a half a billion but then do a freely tradable private placement with one guy who "owns his own company". (I'm pretty sure its just one guy that works for that company and owns it)
Does anybody have an idea why a CEO would do a private placement of stock that is restricted to numerous accredited investors around .0004 a share but then turns around and gives freely trading shares to another "accredited investor"?
Can anybody think of a reason why someone wold do this? If I was the accredited investors that bought the restricted shares I would be a little upset that this guy got all freely trading ones.
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