Replies to post #92903 on Laidlaw Energy Group, Inc.(fka LLEG)

[squidster]

Restricted stock would eventually add to the float and dilute equity ownership as it is only restricted for a brief period typically 1-2 yrs. When restricted stock is issued it is not able to be traded until the conditions have been met, once they have the certificate needs to have the legend (restriction) removed by the transfer agent then a new certificate is issued without the restriction and the stock is then free to trade.

[Leroy Jenkins]

The only way a restricted stock sale would not eventually dilute the common shareholders would be if the shares in the transaction had already been authorized and issued.

Until uplisting occurs, no one knows how much issued common stock insiders hold, and that includes the company itself. If the company has held previously issued common stock, LLEG could use it's holdings for an all stock transaction without diluting the common shareholders (while putting a sales restriction on the shares).

I am not saying this is what LLEG has done, but it is common way to make aquisitions or raise cash with stock, without diluting shareholders.