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Blitzed

03/16/21 3:59 PM

#217597 RE: sojomy #217596

The offering price of the secondary sale of shares is not correlated to the stock price



It absolutely is. Nobody would buy the shares at $200.00 a share when the share price is $15.00 and the company wouldn't sell the shares at $1.00 per share in the same scenario. This is because these sales are correlated with the stock price.

jealmc79

03/16/21 4:23 PM

#217601 RE: sojomy #217596

“but they actually could do a 100:1 r/s (which puts the post-r/s price at $16.50 currently) and still do an offering price of $4.25”

Well if Kim was dumb enough to do that then the stock price is immediately going to zero because no sensible investor would put their money into a company that would do something that stupid.