Answers and comments in bold to questions...
The warrants again make alot of sense. Why push them so far out in the future... if they weren't planning on holding. That is the expiration date of them, not the exercisable date. They can obtain the shares at any time and sell at any time and I am sure they would if it meant substantial return on equity.
I also agree that once the clearinghouse is officially in neustar's hands, the licensing and campaigns begin to roll fast. And we all know, as soon as licensing starts to roll, campaigns and CLICKING starts to roll, and with all of that, comes BIG TIME revenue. Assumption...no one knows how many clicks, nor how much for each one...all are just guessing as we have never seen any official licensing agreements
I can't imagine that the company won't try to list on Nasdaq.
Why wouldn't they? It's in YA Global's best interest, if I'm deciphering all of this correctly. Regardless if they convert at .01 or .55 ..... it's much more profitable to sell when the PPS is at $65./share a few years down the road, than to sell at .45 or .25. This is all assuming the PPS will ever get this high.
I guess the quickest way to get on the Nasdaq is the RS. That is the only reason a RS is good. Reduce the float, get on the Nasdaq and allow institutional investing to begin.... which WILL bring the pps up to $50-$100 when BIG TIME Revenues are the NORM. As noted by another poster, many of the listing requirements would still not be met for years to come.
They can be rich, just by diluting and slamming the pps.... after the RS... or they can be massively rich by allowing a listing on Nasdaq, and letting this thing run. Assumption....as they are keeping the Authorized shares at 5B, they have substantial maneuvering ability to do both and then some
I don't personally know the break down of all of their options.... and the total number of shares they are able to convert over the years. Read the filings on Edgar and as they are now required to report all trading and amounts of shares, it is spelled out very clearly in the filings....take out calculator and add/subtract away.
I am curious on how much is actually possible to convert and unload into the float over a year's period. Simply as much as they want. Please take a look at the filings and the number in the columns and what they correspond to below. Almost all of the warrants are exercisable now, so they can immediately sell into the open market. The only thing limiting them in the amount of shares they own at one time, but if they are just converting and immediately selling the ownership/shares, it is a mute point
I'm also trying to grasp how the limit of 4.99% ownership of OS comes into play when considering YA's strategy of converting and holding/selling.... You will not know the strategy until is is disclosed in thier mandatory filings at a 10% owner. Simply, you will not know until they have completed their strategy. Whether that is good or bad for your shares has yet to be determined.