Here is a suggestion off of the *raging thread*... I could not log in over there so I will answer it over here.
ragingbull.com
He thought it was a bad idea, to be issuing the IPO stocks to CVIA investors.
Once again EUTO comes up. We are not like EUTO, as time will define that. This is like comparing a horse to a zebra... true they come from the same family tree, but are very different.
****not slamming EUTO if it makes you feel better we will be the zebra in this example <LOL>
There are several reasons for distributing these stocks, some of it is proprietary secrets... simply if this method got out every one would do it and we would create our own competition.
There are several reason why I think these Divs are important.
1. The distribution will have a minimal impact on CVIA, and the after effects of these distributions will have no effect CVIA or its holdings in any way. Sound funny??? well its not, thats why its a secret <g>
2. The "new shares" will only be distributed once an IPO date and PLACEMENT transactions have been confirmed.
3. It builds an immediate investor base for the IPO company... shareholders already in place, plus HYPOTHETICALLY lets say an investor receives 20 shares of XYZ... after a few months XYZ defines itself and starts really looking good, that investor has an incentive to increase the XYZ holdings to XXX shares based on the 20 free shares already in the investors account. The 20 shares are Free shares so it goes a long way towards averaging down. <g>
4. The shareholder will have a bit of an increase on their tax load, but CVIA will be reducing our tax load... pay the investors instead of the tax man <g>
There are a few more reasons... but at least it can show you some of the reasoning, and workable methods, allowing all parties CVIA, shareholders and the "new companies" to greatly benefit from doing things this way.
Some of this is a secret I learned a long long time ago... my "other company" has private shares with private investors. These shares pay 30% dividends and it cost the company only 1 to 2% of its TOTAL revenue........ no shares for sale, just making a point.
KAA
*still in search of the proof reader <g> |
