12-05-2013, 07:14 AM
(This post was last modified: 12-05-2013, 07:23 AM by tradestar2012.)
(12-05-2013, 07:09 AM)thecrazykevy Wrote:
(12-05-2013, 06:43 AM)kevinh Wrote: That is the way I'm reading it too. If there's a default, the shares become property of the lender and converted to class A automatically. Are they planning to pledge the shares? If so, why? The company has $100M in cash to grow and expand.I don't think this is about the company itself pleding shares for a loan if that's even possible. I think this relates to the founders of NQ who own super voting shares and pledging those shares to borrow cash for personal use.
On a side note, I have wondered where the founders came up with the $5M to repurchase shares on the open market (management repos). I did not get the sense that senior management was rolling in $$$. Possibly money from the initial IPO?