frommi Posted February 25, 2014 Share Posted February 25, 2014 Hi, i just came across a funny 8-k and i am wondering if this is legal. http://biz.yahoo.com/e/140224/mrna8-k.html The investor buys 6 million stock for 0.75$ and gets 6 million warrants for free. The stock is at 1.6$ after the press release and they can simply sell the shares, make a quick buck and still have the warrants left. That is an investment without risk. I want that, too! (and at that point i was really wondering if this is legal.) Link to comment Share on other sites More sharing options...
Guest wellmont Posted February 25, 2014 Share Posted February 25, 2014 apparently. if you want to see other no risk investments check out blank check companies. this is what happens in extended bull markets.... Link to comment Share on other sites More sharing options...
Parsad Posted February 25, 2014 Share Posted February 25, 2014 Hi, i just came across a funny 8-k and i am wondering if this is legal. http://biz.yahoo.com/e/140224/mrna8-k.html The investor buys 6 million stock for 0.75$ and gets 6 million warrants for free. The stock is at 1.6$ after the press release and they can simply sell the shares, make a quick buck and still have the warrants left. That is an investment without risk. I want that, too! (and at that point i was really wondering if this is legal.) He's actually buying $6M of convertible preferred stock with the warrants attached. The stock probably jumped because he gave them the cash they needed to survive, but it's probably not likely he would be able to sell a substantial amount of stock without the price moving down. If things go well over time, he will have made a nice deal. If a company needs cash, you can make such sweetheart deals. Look at Buffett's or Fairfax's deals with distressed companies in 2008 and 2009. We are working on one ourselves at the moment, but obviously much smaller. Cash is king! Cheers! Link to comment Share on other sites More sharing options...
Cardboard Posted February 25, 2014 Share Posted February 25, 2014 Hi Sanjeev, Please post the link/press release if your involvement with this financing becomes public. I am always interested learning about such things. Cardboard Link to comment Share on other sites More sharing options...
gg Posted February 25, 2014 Share Posted February 25, 2014 My bet is on a small wholesale electronics distributor in the middle of a major restructuring? Link to comment Share on other sites More sharing options...
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