blackstone code

Chapter 953 Expansion [This chapter is named by: book friend 150725174121456-4]
After people's applause had almost subsided, Lynch raised his hand and pressed falsely, "I have a second thing to announce, we will increase our share capital."

"We will use the closing price on the last day as an important basis for reference. After the evaluation of the two consulting companies of Bu Pain, the current market value at any moment should be between 8000 million and [-] million."

"We take the middle number, which is 9000 million."

"You must be very clear about what happened in the company recently. It is precisely because our raw material channels are restricted by others, so even though we should occupy a more important position in the transaction between the two parties, we still lose initiative."

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

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

"Because Mr. Wardrick and I have the same opinion, we already hold more than half of the shares, so this matter can be confirmed without discussion and voting at the general meeting of shareholders."

"We initially intend to increase the value of [-] million shares, and all shareholders can subscribe in proportion to the shares they hold."

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

"It doesn't matter if someone is unwilling to subscribe. The extra shares will be further distributed to shareholders who are willing to subscribe until the end."

"We have a week to think about it, and after a week, we will make an announcement."

"Do you have any comments?" After Lynch finished speaking, he looked at Mr. Wardrick, who shook his head, expressing his agreement with Lynch's decision.

This change made the expressions of many people very unnatural. To put it simply, this increase in share capital means that each person has to spend the same amount of money to maintain their voting rights.

Indeed, after the expansion of the share capital, they hold more stocks, and the wealth only continues to exist in a different form - from the federal sol, the specific currency in circulation, to the company's stock, and the value is equivalent .

But in fact their voting rights have not changed at all. People with 390% of voting rights still have 390% of their voting rights after spending [-] million. One-tenth becomes two percent.

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 will throw money and kill you.

Once those start-ups are successful, large and small shareholders will request to issue additional shares to expand the share capital, and the purpose of doing so is to kick the founders away.

The success of an entrepreneurial enterprise does not mean that the founder also has money in his hands. Let me give a simple example.

A founder created a company with a market value of 10 yuan.

Several investors invested 90 yuan, but only got 30.00% 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 in the form of capital increase.

Many founders don't care about this. In their view, money entering the company's account is equivalent to entering their own pockets, because they always hold the most shares.

So the company now has a market value of 100 million, the founder holds 70.00% of the shares, and the investors hold 30.00% of the shares.

At this time, the business was successful, and the market value of the company increased to 1000 million. The shares in the hands of the founder remained unchanged, which also meant that he was worth 700 million.

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

They invested [-] million in one go.

At this time, the "700 million" in the hands of the founder is actually only the value of the shares in his hands, and he can't afford more money to continue to invest.

His shareholding has been diluted from 70.00% to [-]%. He is almost not even qualified to attend the shareholders' meeting, so he can only attend as a non-voting delegate.

Naturally, what he said was nothing more than fart to the company. Those investors could easily decide who would be the president, and even decide whether the shares held by the founders had voting rights.

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

If founders keep up?Then if he wants to maintain his equity, he must spend at least 3000 million additional funds to ensure that his equity will not be diluted.

Even if he can take out 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 non-voting attendant, investors can transfer the funds away with some simple means and keep the equity unchanged.

This is the situation now, Lynch made a bet, and everyone else had to call if they didn't want their voting rights to shrink.

They have to collect a total of 9000 million to ensure that their rights have not changed.

But... next time?

What about next time?

The faces of all shareholders have undergone some changes, including the manager of Rongsheng Gold Bank.

He thought that when the company was acquired, even Lynch should focus on defense—such as using funds to bid with other hostile bidders to recover the shares in the hands of shareholders.

But what he didn't expect was that he would increase his share capital as soon as he changed hands, which forced those acquirers to call.

If they don't follow, the shares they spent a lot of money, energy and more favors on in the early stage will immediately shrink by half!
If they want to follow, almost 30.00% of the tradable to non-tradable shares, they will have to spend more than 1 million to maintain the same.

And what Lynch did was to spend almost that much money.

This is a model of using one's own sufficient wealth to burn money compared with others!
What is even more irresistible is that Lynch and Mr. Wardrick hold more than half of the shares, and resolutions can be made without the approval of the shareholders' meeting. They have no room to resist!
For a while, the conference room fell into silence, no one spoke, and everyone was thinking about gains and losses.

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

Every moment will use the "black gold" tobacco leaves produced in Nagalil as the main raw material in the future, and tell everyone that the company has signed a 20-year supply contract with an agricultural product company in Nagalil.

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

After the meeting, Lynch didn't go back in a hurry, but called the shareholders of Bright Future Investment Company one by one to inform them that there was going to be a meeting tomorrow.

That's what it should be.

It is Lynch's own business to increase his shares privately, but Tomorrow's Light Investment Company has to pay for it if it wants to keep up.

Public is public, private is private, capitalists' excuses are really fucking easy to use.

In the evening, Lynch sat with Mr. Wardrick and Severella, and Mr. Wardrick invited Lynch to dinner.

Although it seems that Lynch took the initiative to send the 5.00% shares to Mr. Wardrick, in fact, if there is no Lynch, Mr. Wardrick will need to spend some money to buy these shares.

Moreover, these stocks did not fall into the hands of Mr. Wardrick, Lynch played a trick, he used some words.

In fact, Mr. Wardrick only owns [-]% of the shares, and the remaining [-]% is in the hands of Severilla. This can be regarded as a small gift from Mr. Wardrick to his daughter.

It's really annoying, when will this kind of small gift become popular among ordinary families?
Enjoying an expensive dinner, the atmosphere is very harmonious.

Severella put down the wine glass in his hand and asked softly, "What are you going to do next?"

"Kick out and relist those who don't belong in the moment."

After Lynch finished speaking, Mr. Wardrick's eyes showed a look of appreciation.

He thought that Lynch would say something else, but he didn't expect that he would talk about the issue of going public as soon as he came up. This also proved that Lynch has never changed, and he is still the little fox of the skater.

As a young man Mr. Warderick once owned a private business, which he thought was the best thing that could happen.

He is like a king giving orders in the company, no one can object to his request, even if people know his request is wrong, those people will still follow through.

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

That feeling...unforgettable, but it wasn't the right way. Later, his company was attacked, and the family behind him didn't help him. It wasn't until he had to agree to other investors' shares that his family made a move helped him.

This also made him understand a truth, no matter how strong a person is, if he does not want to be rejected by the whole society, then it is best to abide by the rules of this society.

It restrains the strong and protects the weak. In fact, the reverse is also a kind of protection for the strong, protecting the strong from being eaten by the weak who gather.

Of course, this also has a premise that you have enough ability.

He thought Lynch would be obsessed with his grasp of power, but now it seems that he is sober.

Once it is re-listed every moment, the stock price will definitely rise all the way, even surpassing the previous highest price. This is the reason for "capital correctness". Everyone wants to make money, and you must also let those who are qualified to participate make money.

Severella didn't have so much emotion, she was a little unbelievable, "Is it that simple?"

Lynch nodded, "So what do you think, how hard should it be, or should I do something else?"

Severella didn't continue to speak, but savored the content of her chat with Lynch, and the content of Mr. Wardrick's conversation with her.

She began to get in touch with business matters gradually. After all, Mr. Wardrick will be getting older and older. He can't always make decisions on his own. Someone needs to take over his job, and his daughter is the best candidate.

Watching his daughter grow up through each incident, Mr. Wardrick was a little emotional.

God did not give him a boy, but gave him a smart girl.
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In fact, there are many terms and restrictions on financing, and there are even many gambling agreements. The situation is very complicated. The examples here are just simple distances and do not have any practical value.

　Regarding the fan title event, I found out that those who applied for this month last month could not send private messages for the event.

It can be said that all book friends who voted for ten monthly tickets, or rewarded [-] points, can leave a message in the event post of the book friend circle and receive a "Starting King" fan title

　
(End of this chapter)