Blackstone Code Chapter 953: augmentation[this
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After the applause had almost ceased, Lynch raised his hand and pressed his hand, "I have the second thing to announce, we are going to increase our share capital."
“We will use the closing price of the last day as an important basis for reference. After the assessment of the two consulting companies of Bupen, the current market value should be between 380 million and 400 million at every moment.”
"We take the middle number, which is 390 million."
“Everyone must be very clear about what happened in the company recently. It is precisely because our raw material channels are restricted by others, so even if we should occupy a more important position in the transaction between the two parties, we also Still lost the initiative."
"In order to solve this problem, in order to give people more confidence in many ways, so that people believe that we will not fall, so the increase in equity capital is inevitable."
"The augmented share capital will focus on addressing raw material constraints, establishing new research institutes, etc."
"Because Mr. Wardrick and I are in agreement, we already own more than half of the shares, so there is no need for a general meeting of shareholders to discuss and vote on this matter."
"We initially plan to increase the value of 390 million shares, and all shareholders can subscribe in proportion to the shares they hold."
"This part of the funds will flow directly into the company's public account and will be supervised by the general meeting of shareholders, the board of directors and myself."
"It doesn't matter if someone is unwilling to subscribe. The extra shares will be further distributed to shareholders who are willing to subscribe until the end."
"We have a week to think about it, and in a week, we'll announce this."
"Do you have any opinion?" After Lynch finished speaking, he looked at Mr. Wardrick, who shook his head and agreed with Lynch's decision.
This change has made many people's expressions very unnatural. To put it simply, this capital increase means that everyone has to pay the same amount of equity to maintain their equity. Voting rights.
Indeed, after the capital increase, they also held more stocks, and the wealth only continued to exist in a different form - from the federal sol, the specific currency in circulation, to the company's stock, the value is equivalent.
But in fact their voting rights haven't changed. People with 1% voting rights still have 1% voting rights after spending 3.9 million yuan. At 900,000, the voting rights have changed from one percent to two percent.
This is actually very rogue, and this is also the most direct and effective way for capitalists to constantly embezzle small and medium-sized enterprises - I will throw money at you.
Once those start-ups are successful, large and small shareholders will ask for additional shares to expand their share capital, and the purpose of doing so is to kick the founders away.
The success of a startup does not mean the founders have money, to give a simple example.
A founder created a company with a market value of $100,000.
Several investors put in 900,000, but only got 30% of the shares. When they invest, they will have a requirement to buy shares at a low price, and then more money will go into the company's capital in the form of capital increase. in the account.
Many founders don't care about this. In their view, the money goes into the company's account and it goes into their own pockets, because they always hold the most shares.
So the company now has a market value of one million, the founder holds 70% of the shares, and the investors hold 30% of the shares.
At this time, the business was successful, the company's market value increased to 10 million, and the founder's shares remained unchanged, which also meant that he was worth 7 million.
But at this point the investor asks for an expansion of capital - usually a clause or agreement in the contract of the initial investment.
They invested 100 million in one go.
At this time, the "7 million" in the founder's hands is actually just the value of his shares, and he can't come up with more money to continue to invest.
His equity has been diluted from 70% to 6%, and he is almost not qualified to attend the shareholders meeting, so he can only attend.
Naturally, what he said is just fart for the company. Those investors can easily decide who will be the president, and even decide whether the equity in the founder's hands has voting rights.
They can even force founders to sell their stock through some legal or illegal means!
What if founders keep up? If he wants to keep his equity unchanged, he must provide at least 230 million additional funds to ensure that his equity will not be diluted.
Even if he can come up with one round, what about the second round?
What about the third round?
When he is kicked out of the board of directors and can only attend the general meeting of shareholders, investors can transfer the funds away with some simple means and keep the equity unchanged.
This is the situation now, Lynch made a bet and everyone else had to call if they didn't want their voting power to shrink.
A total of 390 million will be required to ensure that their rights remain unchanged.
But... what about next time?
What about next time?
The expressions of all shareholders have changed, including that of the manager of Rongsheng Gold Co., Ltd.
He thought that when the company was acquired, even Lynch should focus on defense -- such as using funds and other hostile bidders to bid for the stockholders' stock.
Unexpectedly, he would increase his equity as soon as he changed hands, forcing those acquirers to call.
If they don't follow, the shares that they spent a lot of money, energy and more favors in the early stage will be halved immediately!
If they want to follow, almost 30% of the tradable to non-tradable shares, they have to spend more than 100 million to maintain the same.
And what Lynch did, was to shell out almost that much money.
This is an example of using your own abundant wealth to burn money in comparison with others!
What makes it even more irresistible is that Lynch and Mr. Wardrick hold more than half of the shares, and resolutions can be made without the consent of the general meeting of shareholders. They have no room to resist!
The meeting room fell into silence for a while, no one spoke, and everyone was thinking about the issue of gain and loss.
Later Lynch announced some new plans and development directions for the company, including solutions to tobacco leaves.
We will use "black gold" tobacco leaves from Nagalil as the main raw material in the future at all times, and tell everyone that the company has signed a supply agreement with an agricultural product company in Nagalil for 20 years. contract.
All the tobacco leaves of the other party are only used for supplying every moment, not for sale, and the price is low...
After the meeting, Lynch did not rush to go back, but called to inform the shareholders of Tomorrow's Light Investment Company one by one that there would be a meeting tomorrow.
That's what it should be.
Lynch's own private augmentation is his own business, but if Tomorrow Light Investments wants to keep up, it will also have to pay.
Public is public, private is private, capitalist excuses are **** easy to use.
In the evening, Lynch sat down with Mr. Wardrick and Cerverella, and Mr. Wardrick invited Lynch to dinner.
Don't look at it as if Lynch took the initiative to send the five percent of the shares to Mr. Wardrick. In fact, if there was no Lynch, Mr. Wardrick would have to spend some money to buy these shares.
And these stocks did not fall into the hands of Mr. Wardrick. Lynch played a trick, he used some words.
In fact, Mr. Wardrick owns only 0.1% of the shares, and the remaining 4.9% is in the hands of Cerverella, which is also a piece that Mr. Wardrick gave his daughter small gift.
It's really annoying, when will this kind of small gift become popular in ordinary families?
Enjoying an expensive dinner in a very harmonious atmosphere.
Severella put down her glass and asked softly, "What are you going to do next?"
"Kick out those who don't belong in every moment, and re-list."
After Lynch finished speaking, there was a look of admiration in Mr. Wardrick's eyes.
He thought that Lynch would say something else, but he didn't expect him to mention the issue of listing as soon as he came up, which also proved that Lynch has never changed, and is still the little fox of the skater.
Mr. Wardrick had owned a privately owned business when he was young, which he thought was the best thing ever.
He commands the company like a monarch, no one can object to his demands, even if people know his demands are wrong, those people will still comply with them.
Because he is the only king in the company, no one can go against him.
That feeling... unforgettable, but it wasn't the right thing to do, his company was sniped, and the family behind him didn't help him until he had to agree to other investors to take a stake in his The family came to help him.
This also made him understand a truth, no matter how strong a person is, if you don't want to be excluded by the whole society, then it is best to abide by the rules of this society.
It restrains the strong and protects the weak. In fact, the opposite is true. It is also a kind of protection for the strong, protecting the strong from being eaten by the gathered weak.
Of course, this also has a premise that you have enough ability.
He thought Lynch would be addicted to the grip of power, but now he appears to be sober.
Once it is re-listed every moment, the stock price will definitely rise all the way, or even exceed the previous high price, which is why "the capital is correct", everyone wants to make money, and you must also get people who are qualified to participate Making money~IndoMTL.com~ Severella doesn't have so many emotions, she can't believe it, "Is it that simple?"
Lynch nodded, "So what do you think, how hard should it be, or should I do something else?"
Severella did not continue to speak, just savoring the content of her conversation with Lynch, as well as the content of Mr. Wardrick's conversation with her.
She began to get into business gradually. After all, Mr. Wardrick will be getting older and older. He can't always be his own boss. He needs someone to take over his job. His daughter is the best candidate.
Watching his daughter grow through each incident, Mr. Wardrick was emotional.
God did not give him a boy, but a wise girl.
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In fact, financing will have many terms and restrictions, and even many gambling agreements. The situation is very complicated. The example here is just a simple distance and does not have any practical value.