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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Brad who wrote (2183)1/29/1998 10:43:00 AM
From: Andrew H  Read Replies (1) of 27968
 
Thanks for the info, Brad, but this is not clear to me. If credit is based on trading volume, then it is not necessarily connected to stock price at all. If it is based on the price of the stock, that is far easier to understand. If that were the case, then perhaps the 25M line of credit would depend on a stock price of $3/share or more. That would make more sense since it is hard to imagine a line of credit which is larger than the market cap of the company.

Also, do you have any idea what happens to the stock if say, the company wants to borrow 5M? How much stock would they have to provide to do that, depending of course on the price? With 30M shares already out, any more shares issued will lead to serious dilution. If I get enough questions that can't be answered, I will stop bothering everyone on the board and just call the company myself. However, since the company has asked for a spokesperson, I have so far refrained.
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