RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Rights offer , timing and Prometic Yes , yes I saw that Dad, you use Billions on one post and then Millions...difficult to follow. I did say regardless and used the 100M figure. Anyway, we will see...I hope you are wrong.
Cubalibra wrote: 5-10 billion is talking in present context b4 the 1 for 1000 Reverse Split. Same as 5-10 million after the split. Same thing. Guess I have to Spoonfeed you. To list on the Nasdaq they have to do a secondary offering on that exchange. If you think that will be less than 5-15 million shares at $10-$15 a share, you are dillusional. Also, I bet there is currently only $40 million left, if that. Another $75 mil in Rights offering. After that is completed they will have $100 mil total. This fiasco will have cost $50 mil from Apr to June/July. Minimum. So many layoffs. Severance. Etc.
aldo451 wrote: Just as I thought, a bunch of non-founded opinions...
I would try to find out which broker(s) the people that you know who received their shares before you are using, you may want to consider changing brokers.
Also, your numbers need to be more consistent, is it 5-10B or 5-10M (I think you mean $B) shares before Nasdaq? Regardless, why are you “guessing” they will do this? And, why just before Nasdaq? What is your reasoning (opinion) behind this? Why would the major shareholders want to (significantly) dilute their investment by $100M? And again, who is going to buy this new mammoth offering in just 5 months from now while the dust from the current initiative will just start to settle.
Cubalibra wrote: Anything I, or anyone else, says here is an opinion, unless providing a link/source. However I was involved in a Rights offer previously, and with TD I was really late getting the shares. People with other brokerages got theirs 4 - 14 days before mine showed up in the account. Things are not equal. So you can bet your a$$ that the corporate brokerage accounts will get theirs b4 u get yours. Just another way the retailer gets screwed. Again, just an opinion, but watch and see. Also 25.6 billion shares soon. Then 3.4 billion in executive compensation they have just applied for. Total 29 billion soon. RVSplit to 29 million at 1000 to 1. Do you really think that when they list on Nasdaq they won't issue 5 - 10 million shares there? Wake up...of course they will. Again, just an opinion, but just watch that play out over the coming months. My guess another $100 mil raised on Nasdaq. Bet on it.
aldo451 wrote: Here is a second question for you.
You wrote: When they go to Nasdaq, they will issue another 5 - 10 billion shares there
That is an aditional $75M-$150M at .01521 ! Where do you get these numbers from?
Also, please answer my first question, I'm interested in hearing where you source your information in order to make such statemnts.
Hi Cubalibra,
are you certain about this statement: brokerage houses will have the new shares and will be trading them long before you get yours.This doesn't sound right.
I would think that all new shares will be made available for trade on the same date for everyone, after they announce the closing and details of the rights offering...I could be wrong. Cubalibra wrote: No problem. Have edited my list a little, and spaced it out....have a look.
wyndewest wrote: Cubalibra,
Thank you for your very detailed answer. You have made the entire rights offericlear to me. I was not sure about Consonance Capital. Looks like we are being kept in the dark about their particpation or NOT. Why would these pople (TV etc.) do something like that? They really must NOT WANT the retail investor to participate. It makes me wonder if TV and Consonance were required to have a rights offer in order to proceed with their restructure plan. ie. get the heads up from TSX etc. Anyway, thanks again.
Cubalibra wrote:
1. If only the original approx 750 million shares are eligible for rights, and there is 100% demand, you will get 6.667 shares for each 1 share you own on the Record Date.
2. If there is only 250 million of those original shares asking for Rights, you will get 20 new shares.
3. Anywhere between 250 and 750 million shares asking for 20 Rights, you will get between 6.667 and 20 new shares.
4. If the newly acquired 3 billion Shares negotiated by Consonance Capital are eligible for Rights it will depend how many they Commit to the Rights offer. If they committ all 3 billion, there will be 75 billion total demand and only 5 billion to be issued, so you will get 1.333 new shares for each one you own on the Record Date.
5. If CC only asked for a portion of those 3 billion Rights, then you will get between 1.333 and 6.667
6. You won't know how many shares you received until after they make that announcement, a week or so after the Rights Closing Date, and long after you committ enough cash for 20 new shares, if that was you wish.
7. You will wait between 2-3 weeks after the close of the Rights offer is my guess, before shares show up in your account. Others, like brokerage houses will have the new shares and will be trading them long before you get yours. Because that got likely hundreds of millions at 1.5 cents, you can bet they will sell, sell, sell, if the price is 3 or 4 cents, and by the time you get yours, you will be lucky if it is above 1.5 cents.
8. You will wait at least a month to get your unused committed money returned to you. So if you have 50k shares on record date and want your million shares, you commit your $15210 and then if CC puts their 3 billion in the pot, you will only get 66650 shares instead of a million, so your cost is only $1011 and your $14199 (minus commission) will not get returned to you for at least a month.
9. They have already asked for permission to issue another 3.5 billion shares for executive compensation, so that will be 28 billion total. When they go to Nasdaq, they will issue another 5 - 10 billion shares there, so look for a total of about 35 billion before the 1 for 1000 Reverse split. A Market Cap of $3.5 Billion, will be only 10 cents per share, and that will be a new high for Market Cap, so everything has to go right to get there. If the MC is $7 billion in 3 years (20 cents per share) I will be really really surprised. Dumbfounded really. Remember, TV an CC only need 3 cents to double their money. It will be tough getting above that - FDA will have to be super kind!!
10. I dont see what is so difficult to understand. It's only math, and any way it goes, it equals = We are phuucked.
[/quote]