Gotcha.
But...even 'tho he/she pays less, the shares are fixed.
You want floorless, check TTRIF...not a pitch by any means. I've been out of it for a while. They had a Reg D, sitting offshore, no less, where every month, the holders were allowed to draw say $1M of shares off the authorized. So, in April, if the price was $1, that's 1M shares, maybe they short or sell those on the market (which was very obvious, daily). Forces the price down. Now it's May, the price is $.80, that's 1.25M shares. June, the price drop to $0.75, that's 1.33M. July $0.50, 2M, ad infinitum. That is floorless. That is a poor choice, made worse only in that it was the 2nd such deal.
Eventually, as the stock approaches 0, the authorized are exhausted, or the company goes kaput. And if you've been shorting, you do quite well...
Don't think we have anything even close to that here. LB |
