r/GDCstonk

There could be a cost benefit analysis that makes sense for the company if their goal is to go private via a buyout to initiate a buy back.

Current share price is let’s call it $2.50 for simplicity sake.

Outstanding shares - 3M if the off market buyer is aligned to ownership / take private. We don’t know how many aligned parties have gobbled up during the dilution event. Could be higher but for this exercise we’ll go with what we know.

Diluting to 40M shares gets the purchase price down to $132M if they are scooping up shares while diluting. They could feasibly raise an additional $20M in capital diluting along the way.

$132M - 60M would take the bid down to $72M as a true cost to the buyer.

Alternatively… what if they used the $40M in capital to buy back shares now at $2.5 per share. There are possibly only 3M shares to buy. If they got them all at $2.5, that’s only 7.5M and they walk away with the leftover cash. Obviously buying 75% of a stocks tradable shares is going to cause the price to grow quickly. But if they did so quietly, and over the next 7 weeks it could be a slow climb. Even if they only get to 75%, buying 2M shares with $40M in cash would be an average cost of $20 per share and they’d still acquire a huge portion of the company for a fraction of the true value price, leaving only 1M shares to take private via the buy out. If they offered $70 per share, it’s still cheaper than diluting, buying the shares aggressively and buying out the remaining 3M shares with cash.

Not convinced the buy out will happen. 1% chance. Total lottery play, which this stock always has been. But a fun thought exercise.

Still holding over here.

  ive noticed a few patterns... innerchild is HAMnakedshorts on X. SAME GUY different aliases. He pumps and then plays short. (G is Hamnaked shorts) Innerchild on ST is Raptor on X. Its a solo circle jerk or with his friends Frankiyy, diago and a few others. Bad guys playing the good guys.... take heed.

Pivot then restructure.

Apply pressure

I’ve been operating under the premise that eventually we would see a return to NAV. Maybe we will, maybe we won’t. At this point, investor confidence is shaken to the effect that without substantial PR from the company with a clear strategy I do not expect a rally.

Looking at it from the perspective of a consolidation of ownership, there are benefits to further dilution in the coming weeks if the end goal is a friendly take private bid.

Above I’ve complied a breakdown of how that might play out, and how an increased float size purchased by aligned parties decreases their overall purchase price substantially while raising albeit a small amount of capital.

Things we should look for, but not expect would be future 13G filings, off market pre negotiated deals like the 260M share dump for $5M.

We have roughly 6 weeks left until their next quarterly filing is do and I expect resolution by then in the event of a capital plan, buy-out take private announcement, or at the very least an update from the independent review committee. The company has explicitly stated that they will offer no update during the process, though I do expect on to come eventually.

I wish all Chinese pump and dumps were investigated and prosecuted to this extent if illegal activity is found. Seize the money stolen by execs from retail traders in massive share issuance, often billions of shares for pennies per share, while the company and insiders rake in 10's of millions of dollars from investors duped by paid promoters and bot farms hyping up "naked shorts".
It's always the company selling shares.....$GDC $OST ➡️ Chinese Execs Indicted for Fraud

HRT is now involved in GDC beneficial ownership filings. Sometimes promoters in various tickers try to tout this as bullish. Some people are unaware HRT is a high frequency trading and market making firm. They are here to provide liquidity and make profits off the spread. They don’t care if the price goes down or up. They thrive on volatility and volume. Ask $YYGH how the last 5 days of HRT “bullish” headlines went. (see 3 pics attached)

Can $GDC implement another Reverse Split after Monday’s 1:250 goes into effect, or would it require a shareholder vote? Simple answer: No Vote Required.

There is a reason a company being registered in Nevada is an investor red flag 🚩.
There are numerous scholar and legal articles on this topic you can look up. Nevada laws gives companies broad powers and investors few rights. That is why problematic companies choose Nevada over Delaware. All investors should research this topic as it is both scary and sobering.

But getting specifically to the reverse split question, in Nevada under NRS Section 78.207 a shareholder vote is NOT required for a reverse split. The Board can just approve another R/S quickly via Board authorization for a reverse split that proportionally reduces both authorized and issued/outstanding shares. Here is the relevant Nevada statute. Yes, companies have pushed through R/S by Board vote only on both Nasdaq and NYSE American.

Does this mean $GDC is secretly planning another R/S if price doesn’t hold? Too early to make assumptions, but since people are writing articles claiming no additional R/S can happen without shareholder vote, it is important to understand that is a false thesis.

If there is interest I can write another article about how companies often slide around the Nasdaq limiting rules too, but let’s stay on topic with this one. Nevada = no shareholder vote required for R/S.

Seems we still have a pump available.