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VivatJesus

06/28/09 3:03 AM

#123694 RE: Crow3 #123675

Who said anything about a PIPE? Link please?
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Libra59

06/28/09 9:32 AM

#123709 RE: Crow3 #123675

IMO, they're positioning the share structure to acquire/merge with another company.

When the pps goes up in value, so does the unissued shares they have in their treasury.

2.5B AS - 723M OS = 1.77B unissued @ .1246 = $211,820,000 in value of unissued shares at Friday's closing.
At .20 pps = $354,000,000 in value of unissued shares.


"Unissued Shares – Shares a company retains in its treasury and not issued to the public or to employees are unissued shares."

"Look at the relationship of unissued shares and restricted shares to float for where controlling interest of the company will reside. Many companies retain a large percentage of the authorized shares in their treasuries or in the hands of management through restricted shares.
Companies do this to make sure no other company can seize control in an unfriendly takeover. They may also want to have stock handy for future issue instead of using debt to buy another company or for another major expenditure.
Controlling interest held in unissued stock means outside shareholders will have little influence over the decisions of the company."

http://stocks.about.com/od/understandingstocks/a/Shareterm113004.htm