Replies to post #18123 on RedHawk Holdings Corp (fka SNDD)

[Cashking74]

You also know that all the subs have there own non public stock shares that can be traded for assets and capital without creating any dilution in the holding Company. RedHawk holding corp building your future today.

[LarryBear40]

Not really, it's just that the holding company "holds" interests in a variety of subsidiaries.

As to "dilution."

Suppose Klug owns 100% of Redhawk Capital. Now suppose IDNG wants to own Redhawk Capital (which is what supposedly is going to happen). IDNG trades shares of its stock for all of Klug's shares in Redhawk Capital.

Now IDNG owns 100% of Redhawk Capital. IDNG has diluted its shares by issuing additional shares to Klug in exchange for his shares in Redhawk Capital. All the retail shareholders have now had their shares diluted, but not Klug, because he obtained the additional issued shares. That's why Klug will do a deal like that. He's not diluting his shares, only the retail shareholders.

My only confusion is why did IDNG only authorize an additional 75 million shares. That doesn't seem to be very many shares if they are going to be acquiring all these subsidiaries. They have no cash, no borrowing ability and no other assets to acquire these subs. I suppose a R/S would make more shares available but I can't see a R/S unless that's the method that IDNG will acquire those subs. Even then, I think IDNG would need a lot more millions of shares available than would be there after a R/S.