Replies to post #21990 on Extreme Motorsports of California (EMOC)

[pascal30]

momentum rider

yes, i was wondering this also for a while..
if they knew they would be able to generate enough cash flow in near future (which they are stating now), it would have been better IMHO to get a better kind of financing (bank loan) or so, to bridge this period in which they still needed extra cash..

giving out shares at a discount to service providers etc and then buying them back x weeks/months later at market value, seems strange to me also..

but im sure they know what they are doing
and as was stated in previous PR, some of their external parties prefered explicitly to be paid out in shares instead of cash

[bigthc]

Because growing companies need cash when they need it. If you are experiencing exponential growth like these guys, you can't put everthing on hold because you are 200k short. You get the money, and keep rolling. Now that they have their ducks in a row, and revenue flowing, They will buy their shares back. Not as an investment to resell the shares, But to retire the shares and add value to the OS shares.

A company that bought and sold it's shares on the open market with inside knowledge of events would be insider trading.