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Old 11-16-2004, 02:04 PM
GatorGuy GatorGuy is offline
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New Corporation Stock

We are looking to reopening a previous small business that was growing at a steady rate. It was decided at one time to sell off and move on for personal reasons. We are now looking into reopening this business as a C Corp. One of our plans at start up is to gain some starting capital by selling a small amount (%) of the authorized shares. What are some thoughts about selling off shares at a fair price even though the percentage of the shares would only add up to about 5% of the company? We are looking into selling the first shares off at or below $0.10 a share. Could you see yourself buying shares at a price in that range even though the P/E at that rate would be vary high? I hope this makes sense?
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Old 11-16-2004, 07:46 PM
Gordon Sharpe Gordon Sharpe is offline
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Should I 'assume' that you are only going to sell these shares to friends and relatives? Selling to the public requires filing a prospectus and registering the offering.

Gordon
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Old 11-17-2004, 01:46 PM
GatorGuy GatorGuy is offline
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Some of the shares could be to friends and family but this may only lead to a small amount. We are looking at selling up to 500k shares.
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Old 11-22-2004, 12:40 AM
doneem doneem is offline
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Can I get 5 shares????

What kind of business is it? Thats a low price, is that all its worth to you or where did you get that price from?
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Old 11-22-2004, 02:37 AM
GatorGuy GatorGuy is offline
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Quote:
Originally Posted by doneem
Can I get 5 shares????

What kind of business is it? Thats a low price, is that all its worth to you or where did you get that price from?
The only reason for the low price is because of the number of shares issued divided by the value of the company. Our corporation would be starting out with over 20 million shares and would have a low overall market value. Also we figured it would be easy to find buyers at that price.
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