Replies to post #65926 on DSG Global Inc (DSGT)

[thor58]

Gitzstv! Whenever you sell shares above “book value” , it is anti-dilutive. These shares will be sold at a price that is astronomically high above book value. Buying shares below book value us usually a good thing if the company is a”going concern”. This company “technically” is not a gong concern, according to the auditors.
But, if Bob S can just judiciously “put” shares to GHS as he begins to demonstrate strong revenue growth ( the theory behind the Chinese electric car JV), and uses the money to build that business, he may find himself “putting” shares to GHS at ever increasing prices.
GHS doesn’t care what price they buy shares. GHS is completely protected from any loss. Each tranche of purchases GHS makes has a corresponding guarantee of no loss. And, GHS doesn’t get to call the shots regarding when the “put” to them is established. Bob S does.
This $7 million is simply a novel financing method that allows DSGT access to $7 million of capital.
For GHS to have entered into this contract, they are implicitly betting on DSGT’s success.
On the downside, if DSGT fails to use the money to grow the firm, and the stock doesn’t go up, GHS stands to lose $$ if DSGR cannot honor the exercise of the put. On the upside, GHS stands to gain on The shares they buy if DSGT stock goes and stays above the GHS purchase price.
So Gitzstv, please stop talking “bullshit”. You are right that Bob S. Made a horrendous mistake in times past. His previous lack of financing acumen caused him to sign on to a “ death spiral “ financing, which you continuously refer to.
But, it is inaccurate for you to refer to this structure in any way as “dilutive”.
This financing appears to be “clean” for us shareholders and its success or failure will depend on the success of the sale of the Chines e-cars in North America, and any other places Bob S. Can get the Tag system installed in. Good luck to other DSGT shareholders. Now we need to watch and see what develops with sales. DSGT is already growing at 20% / year. With these new agreements, up it is possible that sales growth will rise substantially. Let’s see what happens!