Replies to post #107372 on Mike The Pike Productions Inc (MIKP)

[Nikodemos]

Good question!

A company's shares outstanding (or outstanding shares) are the total number of shares issued and actively held by stockholders—both outside investors and corporate insiders.

So let's say, I'm the CEO of "SUPER COMPANY" & you loaned me $50,000.00 in exchange for shares in my business/company!

I will make a book-keeping entry with the Transfer Agent, acknowledging & memorializing the; date, transaction, & shares we agreed to. In exchange for you wiring the monies to "SUPER COMPANY", I will send you a CERTIFICATE OF STOCK in my company. That stock will be stamped: RESTRICTED!!

And we'll have ALREADY AGREED on terms, the holding period, how many shares, etc., & a bunch of other details. In most cases, I am REQUIRED BY LAW to hold those shares (in or on RESTRICTION) for a minimum of 6-months. But usually (under current guidelines) for NO MORE THAN TWO YEARS!


At which time you will be ELIGIBLE to demonstrate to the Transfer Agent that they belong to you, based upon this contract & agreement, issued from this company, etc.. And then you'll go through a rather lengthy SIX WEEKS OR MORE verification & clearing process to get the PAPER CERTIFICATE (shares) transferred into a "commercial" brokerage account, through their COMPLIANCE & clearing firm & into a digitized format that will allow you to liquidate them through that broker.


So what happened today was merely an act of ACCOUNTING!! An acknowledgement that the company has either issued shares TO SOMEONE &/or is reserving the RIGHT to do so. Maybe it is an IP deal, maybe it is for the $50,000.00 loan (as disclosed in the most recent filing), maybe its a combination of current &/or future EXPECTED forthcoming contract, acquisition, etc.; we don't exactly know any of those details yet.


BUT NO MATTER WHAT it is &/or for what purpose(s).... The ONLY thing that happened is that the company announced -- through the UNGAGGED Transfer Agent, that shares were PUT on the RESTRICTED LIST!! We don't exactly know much more: EXCEPT that the restricted period is typically a minimum of 6 months to a MAXIMUM of TWO YEARS (24 - months) from the date of contract, record &/or issuance.


Not much more has happened. Those shares are NOT going to be diluted because they are RESTRICTED -- & are not eligible, until they COME OFF RESTRICTION!! And we should have AT LEAST 6-8 weeks advance notice, due to the process of REMOVING the "Restrictive Legends" I discussed earlier, whenever that min 6mo to 24mos restricted holding period is up.


Hope that helps!

[Nikodemos]

MORE HERE: https://www.investopedia.com/articles/basics/03/030703.asp

The only caveat, that should be noted involves any affiliates, insiders shares, (not limited to but including) the CEO, 5% holders, etc., &/or anyone who has acquired, holds &/or controls > 5%.

They are further restricted in how many shares they can sell in any one period -- usually no more than 1% (of O/S or class) per 3-month period. And with good reason, because they are assumed to both control the largest amount of shares, & also have the most insider-intimate (sensitive) information with which to trade on.

Trading Volume Formula. If you are an affiliate, the number of equity securities you may sell during any three-month period cannot exceed the greater of 1% of the outstanding shares of the same class being sold, or if the class is listed on a stock exchange, the greater of 1% or the average reported weekly trading volume during the four weeks preceding the filing of a notice of sale on Form 144. Over-the-counter stocks, including those quoted on the OTC Bulletin Board and the Pink Sheets, can only be sold using the 1% measurement.

https://www.sec.gov/reportspubs/investor-publications/investorpubsrule144



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