News Focus
News Focus
icon url

JLHammer

11/30/17 12:55 PM

#137034 RE: glennbama #137033

Exactly
icon url

JLHammer

11/30/17 12:55 PM

#137036 RE: glennbama #137033

They can buy as much stock as they want was your key phrase.
icon url

TenKay

11/30/17 12:56 PM

#137037 RE: glennbama #137033

Well technically anyone who buys the stock in the open market is an “equity investor”. My assumption is that Cellucci is referring to an investor who would buy from the company in a private placement. That is the only way the company can get cash directly from a stock sale.

And those have not appeared in any shape or form despite all the “talk”.
icon url

shotsky

11/30/17 1:05 PM

#137044 RE: glennbama #137033

Well, actually, there is something stopping equity investors, and I have mentioned it multiple times here. Equity = stock. Equity investors buy company stock at a discount, usually around 50%. They are then restricted from selling that stock for, usually, at least 6 months.
So, if an equity investor buys in, he expects to make a profit. If the stock price has not changed in 6 months, he can double his investment, minus any costs. But if the stock has dropped, he makes less. If it drops by 50%, the equity investor becomes a bag holder.
But that is only one side of the issue. The other side is that there must be sufficient stock to make an equity investment even work. Because of the existing convertible debt, there are probably NO SHARES left to sell to equity investors - you can't sell shares you don't have.
To get shares there are two possible roads: Increase the AS or perform an RS. That's it. Raising the AS is a HUGE red flag on a company that is so deeply in debt - that just makes the AS larger with the expectation that the OS will follow it.
This is why I got out when I did. I would have lost half my profit if I had just remained 'long', as I sold all above $.005. Others have seen their unrealized profit greatly decrease as well. My thought is simply to see how BVTK gets out of this financial bind FIRST, and then decide whether to put any more money into it afterwards. There is money to be made, as others have said, but the picture at this moment is dismal, and SOMETHING is going to have to give on the SS 'soon'.