RE:RE:RE:RE:RE:RE:What happens when this company goes bankrupt?AUfinder wrote:
Fair enough man, no offense meant or taken.
To shed some light on your concerns about the PP.
Why would someone buy into the PP?
1) Warrants, they offer an incentive to purchase additional shares at a premium to the PP.
2) Ability to purchase a large block of shares without reporting to the TSX regulatory department
3) The abilitty to purchase a large block of shares which you would otherwise have to get on the open market which would drive the price to the moon, and when you finally obtain the 10 million shares you wanted your avg price per share would undoublty be higher than 10 cents.
That's probably the biggest points.
What if the company goes bankrupt?.......well their technology is patented and therefore has some value to it.
another thought about a PP ....
doesnt hurt to know stuff, but Ill stick to charts speculations
BREAKING DOWN 'Takeover'
A welcome takeover generally goes smoothly because both companies consider it a positive situation. In contrast, an unwelcome or hostile takeover can be quite unpleasant. The acquiring firm can use unfavorable tactics such as a dawn raid (where it buys a substantial stake in the target company as soon as the markets open, causing the target to lose control of the company before it realizes what is happening). The target firm’s management and board of directors may strongly resist takeover attempts through tactics such as a poison pill, which lets the target’s shareholders purchase more shares at a discount in order to dilute the acquirer’s holdings and make a takeover more expensive.
A takeover is virtually the same as an acquisition, except that “takeover” has a negative connotation, indicating the target does not wish to be purchased. Why would one company want to buy another company against that company’s will? The bidder might be seeking to increase its market share or to achieve economies of scale that will help it reduce its costs and thereby increase its profits. Companies that make attractive takeover targets include those that have a unique niche in a particular product or service, small companies with viable products or services but insufficient financing, a similar company in close geographic proximity where combining forces could improve efficiency and otherwise viable companies that are paying too much for debt that could be refinanced at a lower cost if a larger company with better credit took over.