Replies to post #50399 on Woodbrook Group Holdings Inc (WDBG)

[tbattaglia]

If you screw current share holders over then good luck being able to sell your shares or newly registered shares at a decent value. Then that would also defeat the purpose of going public. They need to make a market for the shares they would issue and that means not killing current post split holders.

[sello]

There was almost $600k of gross profits used for acquisition of assets. That is beyond basic operating costs. They would have shown $800k in net profit had they not purchased those assets.

One thing to consider is that all the companies involved have assets outside of Woodbrook. It's one thing to purchase a non-affiliated company, it's totally different to bring in your own subsidiaries.

The advantage of doing that is in the value of their preferred. You can bring in autonomous subsidiaries without affecting the individual businesses, salaries, etc, and benefit from the increased valuation of your holdings.

They were talking about an S1, so the possibility of parsing out the preferreds to other investors is also a way to benefit from increasing the value by merging in existing assets.

Have to see how it develops but the idea that they are just going to dump all the preferred into the float, which has been proposed here, is really ridiculous. You could never hold the pps high enough to dump a fraction of what the preferred shares represent in commons, especially with the current structure.