Hulver's site || You're screwed.

You're screwed.

Screwed.	1 vote - 25 %
Really screwed.	3 votes - 75 %

4 Total Votes

Update to unemployment disaster: like you all care. | 13 comments (13 topical, 0 hidden) | Trackback

If that happens by ad hoc (4.00 / 1) #1 Mon Nov 19, 2007 at 10:14:59 PM EST

your option shares are worthless.
--
The three things that make a diamond also make a waffle.

How so? by NoMoreNicksLeft (2.00 / 0) #2 Mon Nov 19, 2007 at 10:24:34 PM EST

As long as the price is above the strike price, they'd be worth something right? Even if it were only a penny per.
--
Do not look directly into laser with remaining good eye.
[ Parent ]

Well, not so much "worthless" by ad hoc (4.00 / 1) #4 Mon Nov 19, 2007 at 10:34:06 PM EST

as invalidated. They won't be worth anything at all, at any price. Not even a penny. Not even part of a penny. They'll all be declared null and void by the agreement with the VC guys (or whatever you're calling them).
--
The three things that make a diamond also make a waffle.
[ Parent ]

IAWTad hoc by Breaker (2.00 / 0) #8 Tue Nov 20, 2007 at 03:23:20 AM EST

Those shares are worth what you can sell them for.

I doubt any institutional investor will touch them; if the liquidity is zero those shares can be valued at 1000 USD but if you can't sell them, they're worth nothing.

[ Parent ]

In my experience by ad hoc (2.00 / 0) #10 Tue Nov 20, 2007 at 09:59:51 AM EST

any sort of deal like the one he's talking about requires a capital restructuring of the company which will declare all previously issued stock and options worthless, null, and void. Certain key players (usually the CEO/owner) will have some new stock issued, but no one else will. I've seen this happen twice now.
--
The three things that make a diamond also make a waffle.
[ Parent ]

: Ouch. by Breaker (2.00 / 0) #11 Tue Nov 20, 2007 at 10:23:04 AM EST

NT

[ Parent ]

So your company by ni (2.00 / 0) #3 Mon Nov 19, 2007 at 10:29:41 PM EST

would be paying $5,000,000 in value to get $2,500,000 in cash.

The idea is usually called a 'reverse takeover'. Normally I imagine it could be a good idea or a bad idea depending on the circumstances, but in a case where you're paying 200% of what you're getting, I'm no expect, but I'm thinking you're completely fucked.

"What woman wouldn't love a guy in WW2 aviator glasses eating their ass?" -- dest

Yeh, my understanding... by NoMoreNicksLeft (2.00 / 0) #5 Mon Nov 19, 2007 at 10:49:19 PM EST

Is that we're doing just that. $5 mil for $2.5mil cash.

But, we're seeing revenue already, it's just an order of magnitude low even for our barebones budget right now. Supposedly. I've heard the term reverse takeover too, but I get confused easily by all this bullshit.
--
Do not look directly into laser with remaining good eye.
[ Parent ]

Why not by ni (2.00 / 0) #6 Mon Nov 19, 2007 at 10:53:03 PM EST

get a loan? Or traditional private capital?

I suspect the reason is because the company is completely fucked, and no one but exploitive scammers will go near it. As I say, I really don't know much about these things (nor, as far as I know, does anyone on husi), but it seems to me that if the company was in solid financial shape, or had reason to think it would be in the future, you'd be able to get money far cheaper than that.

"What woman wouldn't love a guy in WW2 aviator glasses eating their ass?" -- dest
[ Parent ]

Supposedly... by NoMoreNicksLeft (2.00 / 0) #7 Tue Nov 20, 2007 at 12:05:37 AM EST

We got as much uncollateralized loan as they'd give us, and there's not much to collateralize (a fancy $600,000 printer, some other assets).

If we get a major deal, they'd throw more money at us. But at least some of the hesitation (supposedly) on the deals is that they worry we're not funded enough.

I wonder if the credit industry bullshit is making things harder. Does that even affect business credit?

But it's either find another investor, hope to catch a big revenue deal, or this. The other investors are nowhere near the end of the pipeline, and I think we've burned through all the big spenders. I dunno.

I keep self-editing. I probably have said way more than I should already. Blah.
--
Do not look directly into laser with remaining good eye.
[ Parent ]

: Capital. by Breaker (2.00 / 0) #9 Tue Nov 20, 2007 at 03:28:06 AM EST

All of the big banks have had their arses handed to them, and the smaller banks are running out of ideas. Even if it's not hit the headlines yet, I think most banks will be struggling to turn a profit this year. They're battening down the hatches.
There will be no blue sky money being kicked about for a while yet; a lot of the banks have increased their cash reserves to cover their unknown exposure to sub primes.
NB: IANA Financial advisor, just work in the industry.

[ Parent ]

If I were an editor here, by ambrosen (2.00 / 0) #12 Tue Nov 20, 2007 at 02:06:21 PM EST

I'd say I was going to delete your account if you didn't post a diary asking for help with your resume. Sure, it's hard to find work, but there's good people out here who'd be really happy to help you.

Muppet.

If I were an editor here, by ambrosen (2.00 / 0) #13 Tue Nov 20, 2007 at 02:06:36 PM EST

Muppet.

Update to unemployment disaster: like you all care. | 13 comments (13 topical, 0 hidden) | Trackback


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