Quote:
Originally Posted by chiefforlife
They canceled the deal to dilute the stock even further and decided to continue the buy back program. THAT IS GOOD NEWS!
The original announcement was to get more institutions invested but it tanked the stock. So they quickly reversed course which I believe is smart business. Glad to see they care about their investors.
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He said once the price reverts they'll sell again. I think he has to to reward his private ownership (management, employees, himself). Their ownership structure is somehow under this holding company he controls.
The deal sold 6% of the equity to the public. They still hold 94% privately. They were a SPAC so no chance to sell at IPO. The secondary offering of shares was a chance for the original investors to cash in some. SPAC's like this are new to me, I'd think he'd have to keep diluting. I'm not sure how else you'd get their shares into the public float.