RE:Explain please .. ConfusedThe company we we merged with agreed to purchase new shares at 0.34. This diluted Blackbird ownership of the new pipestone company to around 50%. As a percentage, everyone here owns less of the new company than they did of Blackbird. But the new company is bigger/ more valuable so it evens out.
It does not matter, at all, what price the shares are currently trading at. That is completely independent of the price that Pipestone agreed to pay as part of the merger. Right now the shares are trading at 0.235, so that will be the price at which these shares consolidate at.
As of right now, it looks like Garth timed this merger perfectly and got a great premium for blackbird shares at 0.34 because we are trading at 0.235.
LNGStrong wrote: how can BBI common stock be purchased at $0.34/share; complete the merger at at 10:1 BBI:PIPE consolidation and then have a resulting opening PIPE share price of $2.35? i realize the pre-merger price per share of BBI was $0.235 but shouldn't the opening price been $3.40/share?
help me understand what i'm missing.