They PRed that a buy out would be considered. Does anyone know if the buyout can occur with the restricted shares intact remaining restricted. Or do they instantly become sellable on the open market? If they become sellable it could cause problems with the stability of this PPs. Thoughts?
I think you may have misread the last PR. They did NOT say that they're going to be using restricted shares to finance production start up. It said that there is no intention to do so and that it would be considered an ALTERNATIVE finanacing instrument to cover costs not already covered by the manufacturer who will be financing components. Please read below:
Mr. Simoneau's intention is not to entertain a share sell-off when shares become free trading in fall 2011. Said shares could provide an alternate financing instrument at a higher price to cover additional production and marketing costs not covered by the manufacturer who will be financing components during the company's production run. This should reduce the need to increase shares outstanding and protects shareholder value while maximizing production.
Also, not sure how you determined production start up is months away. If pre-production unit is complete, UL testing is all that is required to be ready to begin production.
News is expected in March based on conversations with IR, please read through past posts to get details.