what does this mean

[cashclay]

i don’t understand. they bought the shares at .00001 ?? sorry but financial language can be a bit confusing

 

[BKR88]

i don’t understand. they bought the shares at .00001 ?? sorry but financial language can be a bit confusing

Looks like Lincoln Park might be converting restricted stock to common stock so they can sell the shares.
Not sure though.

 

[cashclay]

Looks like Lincoln Park might be converting restricted stock to common stock so they can sell the shares.
Not sure though.

but they bought the shares at .0001 ?

 

[cashclay]

Looks like Lincoln Park might be converting restricted stock to common stock so they can sell the shares.
Not sure though.

and why does it look like that’s what they’re doing ? it just said they bought shares

 

[SunTrader]

GPTChat or how about that thing called Google:-

"A registration rights agreement is a legal document that provides a stockholder of a restricted stock the right to require a company to facilitate the resale of shares which may mean registering publicly on the open market."

 

[cashclay]

GPTChat or how about that thing called Google:-

"A registration rights agreement is a legal document that provides a stockholder of a restricted stock the right to require a company to facilitate the resale of shares which may mean registering publicly on the open market."

so that means the shareholder can require the company to sell the shares ??

 

[BKR88]

but they bought the shares at .0001 ?

They're buying the common at "Par" (current stock price) + .0001.
Sell the restricted for the same price as the common stock so essentially an equal exchange with almost no cash exchanging hands.
Restricted stock cannot be sold to the public so must be converted to common.
Just my opinion but could be wrong.

 

[SunTrader]

so that means the shareholder can require the company to sell the shares ??

Seems it can mean a few things including what BKR88 suggests.

Are you just curious about this or do you have a financial interest in the outcome?

 

[cashclay]

Seems it can mean a few things including what BKR88 suggests.

Are you just curious about this or do you have a financial interest in the outcome?

im in this stock it’s call cing

 

[cashclay]

They're buying the common at "Par" (current stock price) + .0001.
Sell the restricted for the same price as the common stock so essentially an equal exchange with almost no cash exchanging hands.
Restricted stock cannot be sold to the public so must be converted to common.
Just my opinion but could be wrong.

so it would also cause dilution to the float?