Cash Strapped

[warrior]

If a company is "cash strapped" in a trading sense it usually
1 Borrows on its assets
2 Puts a call on its shares
3 Goes broke

In the case of the NMFCL why doesn't it place a call on its shares ?
That is the shareholders have to
1 Pay a premium to keep their shares
2 If they didn't want to do that -sell their shares to someone who would pay the call
3 Forfeit their shares -which would then be sold on the open market

The objective of the NMFC would be to raise say $1.5 million by this means.

This would also create a further mix of progressive shareholders -not the same old who sit on their hands and do nothing.

 

[Devil Fish]

That's a relief, I thought this thread was going to relate to Pat Cash being strapped.

 

[kangarooter]

If a company is "cash strapped" in a trading sense it usually
1 Borrows on its assets
2 Puts a call on its shares
3 Goes broke

In the case of the NMFCL why doesn't it place a call on its shares ?
That is the shareholders have to
1 Pay a premium to keep their shares
2 If they didn't want to do that -sell their shares to someone who would pay the call
3 Forfeit their shares -which would then be sold on the open market

The objective of the NMFC would be to raise say $1.5 million by this means.

This would also create a further mix of progressive shareholders -not the same old who sit on their hands and do nothing.

I think you need to go back to share trading 101.
There is no such thing as you suggest regarding putting a premium on existing shareholders and forcing them to pay more. The purpose of having a Pty Ltd. company is shareholders liability is restricted to their shareholding.

A call on a share results when shares are issued at a particular face value but the purchasers do not pay the full value at the time of issue. The company will then make a call for part or all of the outstanding amount. Once you own the shares they are yours.