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Posted by DOUBLE ME UP on :
 
This is currently trading at .045 and they are stating from what I get out of it, that they will be buying it back up to.20 a share... please correct me if I am wrong here!!!
Megola Inc. (OTCBB: MGON), announced today it has opened a brokerage account with Glendale Securities, Inc. which will enable the company to buyback its common shares in the open market. Megola and Glendale Securities, Inc. will follow the guidelines found in the 1934 Act's Rule 10b-18 -- Purchases of Certain Equity Securities by the Issuer. Technically, Rule 10b-18 provides a safe harbor only for repurchases of common stock.

"The Board of Directors unanimously voted to open an account which will give the company the ongoing option to buy its common shares in the open market," says Joel Gardner, President and CEO of Megola Inc. "The reasoning behind the share repurchase program is twofold. First, an immediate buyback strategy will enable the company to potentially reduce the number of outstanding common shares thereby putting pressure on any short sellers. Second, the company views share repurchases over time as another way to essentially create shareholder value by purchasing any stock below $0.20 which is the current conversion price per share for the 1,092,255 Preferred Series A Shares that are still outstanding," continues Gardner.

Megola has recently reduced the outstanding shares by 7,031,800 from 33,570,455 to 26,538,655 by moving management's restricted common share volume back into Preferred Series B holdings. Series B Shares have no voting rights or warrant options attached to them. Management also currently holds 641,459 Preferred Series A Shares, or approximately 58.7% of the remaining Preferred Series A Shares eligible for conversion to Common, which may further help to deter short sellers from targeting Megola's common stock.

Recent trade activity of Megola's stock since June 1, 2010 (after conversion dates of Megola's preferred series A and B shares), shows that of the approximately 7.9 million shares traded over 50%, or approximately 4 million, have been Short Sales.

For more information on Hartindo products and Megola Inc. please visit www.megola.com

As of September 7, 2010, the Common Share structure for Megola is as follows:

Authorized: 200,000,000
Outstanding: 26,538,655
Restricted: 130,287
Float: 26,408,368
 
Posted by BooDog on :
 
quote:
Originally posted by DOUBLE ME UP:
This is currently trading at .045 and they are stating from what I get out of it, that they will be buying it back up to.20 a share... please correct me if I am wrong here!!!
Megola Inc. (OTCBB: MGON), announced today it has opened a brokerage account with Glendale Securities, Inc. which will enable the company to buyback its common shares in the open market. Megola and Glendale Securities, Inc. will follow the guidelines found in the 1934 Act's Rule 10b-18 -- Purchases of Certain Equity Securities by the Issuer. Technically, Rule 10b-18 provides a safe harbor only for repurchases of common stock.

"The Board of Directors unanimously voted to open an account which will give the company the ongoing option to buy its common shares in the open market," says Joel Gardner, President and CEO of Megola Inc. "The reasoning behind the share repurchase program is twofold. First, an immediate buyback strategy will enable the company to potentially reduce the number of outstanding common shares thereby putting pressure on any short sellers. Second, the company views share repurchases over time as another way to essentially create shareholder value by purchasing any stock below $0.20 which is the current conversion price per share for the 1,092,255 Preferred Series A Shares that are still outstanding," continues Gardner.

Megola has recently reduced the outstanding shares by 7,031,800 from 33,570,455 to 26,538,655 by moving management's restricted common share volume back into Preferred Series B holdings. Series B Shares have no voting rights or warrant options attached to them. Management also currently holds 641,459 Preferred Series A Shares, or approximately 58.7% of the remaining Preferred Series A Shares eligible for conversion to Common, which may further help to deter short sellers from targeting Megola's common stock.

Recent trade activity of Megola's stock since June 1, 2010 (after conversion dates of Megola's preferred series A and B shares), shows that of the approximately 7.9 million shares traded over 50%, or approximately 4 million, have been Short Sales.

For more information on Hartindo products and Megola Inc. please visit www.megola.com

As of September 7, 2010, the Common Share structure for Megola is as follows:

Authorized: 200,000,000
Outstanding: 26,538,655
Restricted: 130,287
Float: 26,408,368

so they work a deal to be able to buy their own shares insted of just putting up the cash to buy them back themselves. I haven't done any DD on their ability to come up with cash so lets just look at what the deal is. 6 months to pay it back (from 31 Aug) or else. I only briefly scanned it and am on someone elses computer and cant cut and paste, bummer. need to look for the fine print for the interest payments and take a note at the .001 conversions and their effectiveness. As well as what the company is required to keep on reserve.
Here's the deal...
http://sec.gov/Archives/edgar/data/1144392/000114420410048551/v196195_ex10-2.htm
 
Posted by BooDog on :
 
anyway, thinking they'll likely run some kind of campaign to get the price up so they can make the payback.
 
Posted by DOUBLE ME UP on :
 
Boodog, I thought I read it to say they were going to buy it up to .20 a share.. at current pricing thats 4 times what it is now...I got so burnt on Inar, I am just trying to validate that I am reading this correctly...thanks for responding...
 
Posted by BooDog on :
 
quote:
Originally posted by DOUBLE ME UP:
Boodog, I thought I read it to say they were going to buy it up to .20 a share.. at current pricing that’s 4 times what it is now...I got so burnt on Inar, I am just trying to validate that I am reading this correctly...thanks for responding...

Think about the logic here. Why be public to begin with if all you care about is the PPS? And then the lender will just dilute like crazy once they start getting their shares lol. If you get the bounce take it and run imo. See how long they can keep buying shares under .2, I think you'll actually be very surprised - but that’s just my guess.
 


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