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Bullboard - Stock Discussion Forum TELESTA THERAPEUTICS INC T.TST

"Telesta Therapeutics Inc is a biopharmaceutical company. The Company is engaged in the research, development, manufacturing and commercialization of human health products and technologies."

TSX:TST - Post Discussion

TELESTA THERAPEUTICS INC > How to sell off shareholders equity.
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Post by DryBones on Oct 05, 2015 7:44pm

How to sell off shareholders equity.

Plan of Action:

1., Dilute the stock by raising capital through private placements or public placements.  About 300 million shares should do as long as there is also lots of warrants and options outstanding.

2.  Do a reverse split.  If this is prior to good news, it helps.  This caps the stock price and ensures only long term holders will want to maintain a position.

3.  Get exposure for the stock in ruthless markets like Nasdaq that will guarantee volatility.  This will clear off shareholders who were hoping for the spectacular gains possible on a penny stock,  the swing traders, and those who trade on news etc.  

4.  Now issue more stock at the new price, preferably to institutions, mutual funds etc.  The stock is now held mainly by institutions and large shareholders..  Institutions are happy with a 10 % to12%  annual gain. This beats the market handily.  It stabilizes the stock price once again. And It also assures  that there is a ready market for new issues of stock to fund product development following a well conceived and executed business plan.

5.  Now that the company is out of penny stock status everything changes.  It now  has a following of institutions that get lucrative seats on the board.  It has brokerage firms who are guaranteed of future business in raising capital.  And finally management is now in the big leagues and gets their salary jacked.
Comment by 1wascallywabbit on Oct 05, 2015 7:58pm
Bones....LOL Not far from the truth for sure !   Is that something you made up (kudos to you if so) or is that something you found online somewhere? If that is SOP for penny stocks to get to the big leagues, we are surely following the script, so far at least.
Comment by givmeabrake on Oct 05, 2015 10:53pm
1 - Good deal - $37.1 million CDN for 108k  shares issued. NOT 300 2 - RS - Will be AFTER news. Subject to GOOD NEWS. 3 - NASDAK means EXPOSURE to HUGE market of new ambitious, keen investors. NO MORE chump change trades. 4 - WE NEED INSTITUTIONS!!! Market Makers! 5 - Although greed rules in the markets, my instincts tell me Dr. Berendt  has a great deal of integrity (to a fault)
Comment by FactFinder1994 on Oct 05, 2015 11:40pm
I can't speak to the Doctors integrity, but he sure has acquired a lot of options in such a short time at the company (IMHO)..... Would like to hear a lot more from him, as the company still references themselves as being under the radar.....he can fix that!  
Comment by DryBones on Oct 06, 2015 12:49am
Gee, Wascally,  this info comes from my deep well of investor knowledge acquired over several lifetimes.  Of course I wasn't always so knowledgeable.  During the Dutch tulip bulb mania I accidentally ate a group of investors lifetime savings thinking it was an onion.  I won't make that mistake again.
Comment by runningonempty on Oct 06, 2015 9:01am
You are right on DryBones. The shareholder is the one that is going to get screwed. Just watch, we are the fly under the radar company. A lot of people want a reverse split, they seem to think its the best thing, higher exposure on Nasdaq will mean bigger gains. I do not share that philosophy, but we will be powerless to stop the company from doing a reverse spilt. I see no advantage to a reverse ...more  
Comment by terr2 on Oct 06, 2015 9:10am
You have to realize that our illustrious management team are the maker's of this Ground Hog Day fiasco. Cater to the big boy's and fill your pocket's with options and all will be well in their world. JMO
Comment by vega509 on Oct 06, 2015 9:54am
IMO a consoladation with the purpose to get a Nasdaq listing will result in a quick shareprice decline. nothing changes in TST's dynamics, balance sheet, or pending FDA news. investors are not going to but shares just because TST has a listing on Nasdaq, they will buy if they see a comany making money, an iminent partnership with an industry leader, or potential good news that could give them ...more  
Comment by cutthewabs on Oct 06, 2015 10:05am
This post has been removed in accordance with Community Policy
Comment by DamnYankees on Oct 06, 2015 10:00am
They have made it clear that the company will do as they see fit and inform shareholders on a need to know basis, but is it asking too much for management to provide a cost/benefit of uplisting to Nasdaq? What are the goals and what are the possible pitfalls they will avoid, how will it benefit shareholders considering float size, institutional ownership timelines etc.? With Telesta you get none ...more  
Comment by cutthewabs on Oct 06, 2015 10:10am
This post has been removed in accordance with Community Policy
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