GREY:MDCGF - Post by User
Post by
beenthereon Sep 14, 2010 4:32pm
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Post# 17447852
gypsy swap shares
gypsy swap sharesI know the PP was bad for "me" and good for "them".
I just assumed it was to help "friends"
I had never heard the term before. On researching it I came across this:
In almost every case, a gypsy swap is a last-ditch financing option because the new investor(s) almost always demands some combination of below-market value price or special consideration from the deal. In fact, if the issuing company could raise funding conventionally - internally from the equity markets or from the debt markets - it certainly would choose to do so.
Surely MDG could raise money other than this?
So is my original understanding correct? ie. it was done to help "friends"
Thanks
Beenthere Donethat