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Le_Bucheron 11 points ago +11 / -0

From wsbets.win: "big media and Hedge funds and banks and others used the restructure of the sell option from 100million base to 1billion to make it sound bad... but it is actually good.

1). GME fixed number to 3.5 mill instead of up to 6 million 2). GME could have but did not sell those shares when the price was in the 400s 3). 3.5 million is a drop in the buck of the 100million plus that hedge funds need 4). our company can do really great things with a billion dollars in cash and a great new group of executives. 5). GME doesn't have to sell the shares, sell the shares all at once, sell them now or even on the way up the squeeze. They could do like many of us and sell on the way back down.

end soap box. kick the box over."

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Mr_A 6 points ago +6 / -0

Hmm... I'll look into what actually happened (i.e., whether new shares came from GME treasury or was a new offering authorized by the exchange) but any new share offering can only dilute the value of all existing shares in circulation. It's simple. Saying that GME management is handling the windfall wisely or not is a whole different topic.

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MakeAmericaWinAgain 8 points ago +8 / -0

I actually did some DD on this.

Basically GME had a sell contract filed in 2019, which said they could sell up to 6,000,000 shares for a total of $100,000,000. No more of either. This week, GME UPDATED such contract, or deal, whatever you wanna call it.

The updated deal says, that GME can at any point sell UP TO 3,500,000 shares for UP TO $1,000,000,000.

So technically, GME gave themselves the right to make up $1B, with less shares.

HOWEVER, they can exercise this at any price point. So technically, if the share price for GME during the squeeze is at $1M, they’d only have to sell 1,000 shares... TOTAL. If it’s at $10M, 100 shares would do.

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Mr_A 4 points ago +4 / -0

That seems to be a square deal, then. Thanks for the research.