There won't be dilution ??? Just where do you interpret that from this cfo message. I neglected to see the part of the cfo's message where it states the shares will be restricted from sale for a certain time period ? Also what discount is Very Slight, is it 10, 20, 30, or 40% ? In fact the cfo's message specifically does not address that most important issue.
Is this the company in the link below that WILL "NOT BE SELLING SHARES THAT ARE NOT RESTRICTED FROM SALE." I ALSO FIND IT VERY ODD THAT THEIR WEBSITE MAKES NO MENTION OF THEM BEING IN "THE EQUITY FINANCING BUSINESS" ??? However, There has been a massive amount of web hits on their pages, a total 54 ( fifty four ) as of my visit, I wonder how many of those 54 hits came after fcm's news release ??? Wow Impressive
crescentint.com
This news is not and should not be encouraging to the investor, as it is not shareholder friendly. Why didn't fcm secure financing by way of their receivables. Why must it be with shares that are freetrading, as in the financier can sell immediately upon receiving those Slightly Discounted Shares. If fcm shares are $1.00 at the time this financing begins, then the financier will receive over 6.5 million shares. If the Discount to Market is only 20% and fcm shares are at $ 1.00, this means that the financier will receive 7.8 million shares. As there is no restriction mentioned, these shares are immediately available to sell. Using fcm's current share float 18.6 million, and the above equation, these shares represent 42% of fcm's current float count. IF THESE SHARES ARE TO HIT THE MARKET SOON, LOOK OUT BELOW !!!!
NOW THE QUESTION IS WHY WAS THERE NO SHARE RESTRICTION PUT INTO PLACE ?? THERE WAS A SHORT SALE RESTRICTION, BUT NO RESTRICTION ON LONG SALES, WHY ?? WHAT HAPPENS TO THE STOCK PRICE WHEN THESE DISCOUNTED SHARES HIT THE MARKET PLACE. |
