Re:Minister- RETROCOMPENSATION...
in response to
by
posted on
Sep 18, 2008 09:31AM
...which is one of the reasons I suggested that the settlements be paid by requiring the infringing companies to buy EDIG shares on the open market and then require the shares that have been purchased be returned to EDIG for retirement. (This would not allow infringers to profit again.)
This will reduce the outstanding shares (at today's prices by quite a bit) while increasing the pps... fewer shares available.
With fewer shares in the market, and an increased pps, if EDIG needs to issue shares in the future for additional money, fewer shares will need to be issued at a higher price.
How long will it take to buy 50,000,000* shares at the current price... if there aren't any sellers (and now mm's must locate shares to short first)?
There will be sellers along the way upward, perhaps before your avg price is reached, but as the outstanding shares is reduced, your price will be reeached at some point... think of it... the number of outstanding shares was diluted along the way with investors like you and me buying... this is reverse dilution.... what would EDIG be at if there wasn't the need for dilutuion to fund ongoing operations... because other companies knowingly stole and profited from OUR investment?
*assuming a single $5,000,000 settlement with a pps at .10