Your first line says it all and because this company does not communicate with retail shareholders, we are left struggling to make decisions.
In regards to post #35035, I had started reading up on various poison pill strategies (among other things) and I think (don't know) that they may be employing a "Flip-In Poison Pill" which is a strategy in which existing shareholders (not retail obviously), but not acquiring shareholders, are allowed to purchase shares in the target company (DCTH) at a discount. A flip-in poison pill takeover defense dilutes the value of the shares purchased by the acquiring company by flooding the market with new shares, while also allowing investors who purchase the new shares to profit instantaneously from the difference between the discounted purchase price and the market price.
I have to go back and look at the timeline and pricing to see if this theory is feasible.
What I don't get, if the above is correct, is why they employed this strategy as it decimates retail shareholders. With the power to issue preferred shares with certain right's, they could have accomplished the same thing without effecting the stock price while discouraging an acquiring entity.
We already know they have the ability as they issued preferred shares with Super Voting Rights to get the last Reverse Split.
So it is easy enough to issue a "Series" of preferred stock for say $20m that would pay X% interest quarterly for X Years but payable immediately upon a triggering event such as a merger or takeover.
The more I read, the more I am in agreement that nobody knows what is going on and that a court ordered stay in regards to the increase in shares and reverse split is needed unless/until the management and board come clean with retail investors.
All of the above is my opinion only.
DE
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