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Blackstone Code - Chapter 953

Published at 15th of March 2024 06:47:58 AM


Chapter 953

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After the applause almost stopped, Lynch raised his hand and pressed it falsely, "I have another thing to announce that we will increase and expand our share capital."

"We will take the closing price on the last day as an important basis and reference. According to the evaluation of buppen's two consulting companies, the current market value should be between 380 million and 400 million every moment."

"We take the middle number, that is, 390 million."

"You must have been very clear about what happened in the company recently. It is precisely because our raw material channels are limited by others. Even if we should occupy a more important position in the bilateral transaction, we still lose the initiative."

"In order to solve this problem, to give people more confidence in many aspects and make people believe that we will not fall, it is inevitable to increase and expand our share capital."

"The increased share capital will focus on solving the problem of limited raw materials and establishing new research institutes."

"Since Mr. waldrick and I agree that we have more than half of our shares, we can determine this matter without discussion and voting at the shareholders' meeting."

"We initially intend to increase the value of 390 million shares, and all shareholders can subscribe according to the proportion of shares they hold."

"This part of the funds will flow directly into the company's corporate account and be subject to the supervision of the general meeting of shareholders, the board of directors and myself."

"If someone is unwilling to subscribe, it doesn't matter. The additional shares will be further distributed to the shareholders who are willing to subscribe until the end."

"We have a week to think about it. In a week, we will announce it."

"Do you have any opinion?" Lynch said and looked at Mr. waldrick, who shook his head and agreed with Lynch's decision.

This change makes many people's expressions very unnatural. Simply put, the increase and expansion of share capital means that everyone has to pay the same money to maintain their voting rights.

Indeed, after the increase and expansion of share capital, they held more shares, and wealth continued to exist in another form - from federal sol, a specific circulating currency, to the company's shares, with equal value.

But in fact, their voting rights have not changed. After spending 3.9 million yuan, people with 1% of the voting rights still have 1% of the voting rights. Because he paid the 3.9 million yuan, the voting rights have changed from 1% to 2%.

This is actually very rogue, and this is also the most direct and effective way for capitalists to continue to embezzle small and medium-sized enterprises - I smash money and kill you.

Once those start-ups succeed, large and small shareholders will ask for additional shares and expand their share capital, and the purpose of doing so is to kick out the founders.

The success of start-ups does not mean that the founders also have money. Take a simple example.

A founder founded a company with a market value of 100000 yuan.

Several investors invested 900000 yuan, but only got 30% of the shares. When they invest, they will have a requirement to buy shares at a low price, and then more money will enter the company's account by way of capital increase.

Many founders don't care about this. In their opinion, if the money goes into the company's account, it is equivalent to going into their own pockets, because they always hold the most shares.

So the company now has a market value of one million. The founders hold 70% of the shares and the investors hold 30% of the shares.

At this time, the business was successful, the market value of the company increased to 10 million, and the shares held by the founder remained unchanged. At the same time, it also meant that he was worth 7 million.

But at this time, investors require capital expansion - generally there are terms or agreements in the initial investment contract.

They invested 100 million at a time.

At this time, the "seven million" in the hands of the founder is actually the value of his shares. He can't take more money to continue to invest.

His equity was diluted from 70% to 6%. He was almost unqualified to attend the shareholders' meeting and had to attend as a nonvoting delegate.

Naturally, what he said is just farting for the company. Those investors can easily decide who will be the president, and even decide whether the equity in the hands of the founders have the right to vote.

They can even force the founders to sell their shares through some legal or illegal means!

If the founders keep up? If he wants to keep his equity unchanged, he must spend at least 230 million additional funds to ensure that his equity is not diluted.

Even if he can take one round, what about the second round?

What about the third round?

When he is kicked out of the board of directors and can only attend the shareholders' meeting as a nonvoting delegate, investors can transfer the funds and keep the equity unchanged by some simple means.

This is the case now. Lynch has bet. If others don't want their voting rights to shrink, they must bet with him.

They have to raise a total of 390 million to ensure that their rights remain unchanged.

But... What about next time?

What about next time?

Some changes have taken place in the face of all shareholders, including the manager of Rongsheng Jinhang.

He thought that when the company was acquired, even Lynch should focus on defense - for example, using funds and other malicious acquirers to bid to recover the shares held by shareholders.

Unexpectedly, he would increase and expand his share capital as soon as he changed hands, which forced those acquirers to follow the note.

If they don't follow, the shares they bought at a high price, great energy and more human favor in the early stage will immediately shrink by half!

If they want to convert almost 30% of their tradable shares into non tradable shares, they will have to spend more than 100 million to remain unchanged.

What Lynch did, that is, he took out almost so much money.

This is the model of making use of your abundant wealth and burning money compared with others!

What's more, Lynch and Mr. waldrick hold more than half of the shares and can make a resolution without the consent of the shareholders' meeting. They don't even have room to resist!

For a time, the meeting room fell into silence, no one spoke, and everyone was thinking about gains and losses.

Then Lynch announced some new plans and development directions of the company, including solutions to tobacco leaves.

"Black gold" tobacco leaves produced in nagary will be used as the main raw materials in the future at all times, and we tell you that the company has signed a supply contract with an agricultural product company in nagary for up to 20 years.

All the tobacco leaves of the other party are only used to supply all the time, will not be sold, and the price is low

After the meeting, Lynch did not hurry back, but called the shareholders of tomorrow light investment company one by one to inform them that there was a meeting tomorrow.

It should be.

Lynch's own private increase and expansion of shares is his own business, but if tomorrow light investment company wants to keep up, it also has to pay.

Public is public and private is private. Capitalists' excuses are really fucking easy to use.

In the evening, Lynch sat with Mr. waldrick and Sevilla. Mr. waldrick invited Lynch to dinner.

Although it seems that Lynch took the initiative to send the 5% shares to Mr. waldrick, in fact, without Lynch, Mr. waldrick still needs to spend some money to buy these shares.

Moreover, these stocks did not fall into Mr. waldrick's hands. Lynch played a trick and used some words.

In fact, Mr. waldrick has only 0.1% of the shares in his hand, and the remaining 4.9% is in sevierella's hand. This is also a small gift from Mr. waldrick to his daughter.

It's really irritating. When can this kind of small gift be popularized in ordinary families?

Enjoying the expensive dinner, the atmosphere is very harmonious.

Severilla put down her glass and asked softly, "what are you going to do next?"

"Kick out those who don't belong to every moment, and then go public again."

Lynch finished, and Mr. waldrick's eyes showed an appreciative look.

He thought Lynch would say something else. Unexpectedly, he said the problem of listing as soon as he came up, which also proved that Lynch had never changed and was still the slippery little fox.

When he was young, Mr. waldrick once owned a private enterprise. At that time, he thought it was the best thing.

He is like a king who gives orders in the company. No one can object to his requirements. Even if people know that his requirements are wrong, those people will still do so.

Because he is the only king in the company, no one can disobey him.

That feeling... Is hard to forget, but this is not the right way. Later, his company was sniped, and the family behind him did not give him assistance. His family did not help him until he had to agree to other investors.

This also made him understand that no matter how strong a person is, if he doesn't want to be excluded by the whole society, it's best to abide by the rules of the society.

It constrains the strong and protects the weak. In fact, the opposite is also a kind of protection for the strong. It protects the strong from being eaten by the gathered weak.

Of course, there is also a premise that you have enough ability.

He thought Lynch would indulge in the mastery of power, but now it seems that he is sober.

Once re listed all the time, the share price will certainly rise all the way, or even exceed the previous highest price. This is the reason for the "correct capital". Everyone wants to make money, and you must let the people qualified to participate make money.

Sevierella didn't have so much emotion. She was a little incredible. "Is it that simple?"

Lynch nodded. "How hard do you think it should be, or what else should I do?"

Sevierella did not continue to speak, but savored the contents of her chat with Lynch and the conversation between Mr. waldrick and her.

She began to get in touch with business affairs gradually. After all, Mr. waldrick will be getting older and older. He can't always make his own decisions. He needs someone to take over his work. His daughter is the best candidate.

Watching his daughter grow up in every event, Mr. waldrick felt some emotion.

God did not give him a boy, but he gave him a clever girl.

-====

In fact, there are many terms and restrictions on financing, and even many gambling agreements. The situation is very complex. The example here is just a simple distance and does not have any practical value.




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