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Technology Stocks : Information Architects (IARC): E-Commerce & EIP

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To: tech who wrote (3863)12/29/1997 3:36:00 PM
From: feltburner  Read Replies (1) of 10786
 
If a company is raising new money (not insiders cashing out), a Reg D MUST increase the shs. outstanding; the exception is a convertible issue which still increases the fully diluted number of shs. This info. comes from an investment banker that deals primarily in private placements.
I was not trying to say that all Reg D's increase the # of outstanding shs., but merely comparing apples to apples; that is, raising capital for the company. Were CSGI's Reg D offerings merely insiders cashing out (which would be a real slap in the face to shareholders), or were they to raise $ for the company in which case they would have increased the # of shs. outstanding? You can try to twist the argument any way you want (you've had much practice here on SI), but the fact remains your much belabored point is incorrect. The question now is, who is telling you CSGI's offerings were non-dilutive, your investment advisor or Ron Bishop at CSGI?
-Felt Burner
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