Post by
BarstoolSage on May 07, 2021 11:47am
Inside ownership before deal
Does anyone know the degree of inside ownership before the recent deal? One reason the dilution does not bother me (others are the shares paid for a business with real revenues, smart people etc) is that the new owners become insiders with a stake in the future. Those shares will not be flipped
I googled it but no luck and CEO's SEDI screen shows Keith and Leigh Fredericks and some other employees and directors....say 8 to 10million shares....but I expect there may be more concentration
Of them all, I would think Leigh would sell as he is a merchant banker...but the rest may hold
Bottom line is I am trying to determine what the trading float may look like.
Comment by
BCdude on May 07, 2021 2:39pm
At the back of the March investor's deck it says management currently owns 8.6% of the float. It also says post-acquisition, inside ownership will increase to 29%. This must be just an estimate, as the terms of the final deal hadn't yet been announced.
Comment by
BarstoolSage on May 09, 2021 11:13am
So 8.6% of last FS 54mm shares is ajust over 4.6 MM shares...add 21 mm shares in the first trance, that adds up to say 25mm shares owned by insders out of a total of 54mm+21MM is 75mm Makes it 33% owned by insiders...well within reach of your number So about a 50MM public float that is subject to free trading post acquisition...until the earnouts are paid or more money is raised
Comment by
BCdude on May 09, 2021 5:48pm
Yes, and it would be nice to see Keith and Co. buying in the open market at these prices.
Comment by
BarstoolSage on May 10, 2021 3:36pm
Even nicer for me to be the one to have bought at these prices instead of.33 LOL