NEULION, INC. T.NLN

Shares in public float. Correct my math please.

[gibbonsj]

282M shares total
60% owned by insiders
37% owned by institutions according to TR
leaves only 9M shares in public float to be traded
minus say 9M shares buy back at 1.00/share average
leaves 0 shares in the public float.

What's wrong with this math?

[gibbonsj]

[url=https://www.gurufocus.com/ownership/OTCPK:NEUL][/url] posts shares in the public float is only 9.7M which is consistent with my math. Parallax Holdings LLC 61,731,172 2015-06-04 28.42 N/A 62,312 BMO Asset Management Inc 2,205,000 2016-02-29 0.78 0.34 1,091 BMO Canadian

[kynarr]

So by the end of the buyback, the public float will be even smaller than it currently is.. What are the possible implications of that? I've never really dealt with a company where the insiders owned so many shares. Why would they want to buyback the public float when it already is so small? Besides making the stock more illiquid, is it a bad thing?

[gibbonsj]

Because NLN is registered in Delaware different share holder rights apply.  The most recent MD&A outlines the Delaware risks to shareholders. When I look at the plan to raise the shelf another 200M shares it could be to decrease the float to next to nil to give sp a good pop in order to support a higher issue price if a financing is in the works. If there is a financing then because NLN

[kynarr]

Thanks for the details, this is very informative.

[mayorkgh]

That website doesn't make sense. If you go to the rather confusing table on page 27 of the management circular published on April 29th, you will see the beneficial owners of all officers as well as any entity holding more than 5%. According to the footnotes, there are overlapping beneficial owners and Li, Wang, Hale, and Kronfeld have disclaimed beneficial ownership of large blocks  held

[lscfa]

Some co.s simply buyback shares to offset the no. of shares set aside for options granted to officers, directors, employees....

[gibbonsj]

Thanks mayorkgh much appreciated. Re your last line it could be just a head fake. They are not obligated to issue the 200M shares but leading us to think they will would supress current sp which plays directly into their hands when it comes to buying back shares on the cheap.