Yeah think that is better bet, think I jumped in a little bit too early but will see how this one goes and perhaps double down
Ok so after one year, say someone sold 2% every month (12x 2%) = 24% already sold/dumped on the market.
Now still has 76% left to sell, now they can sell 4%, so it will still take 19 months until sold out.
Looks like it was good strategy for management to buy the properties by giving the sellers shares, however if they are forced sellers they will continue to dump and the price will only go lower...I'll wait for 10c or below to take a bite haha
The restriction on trading only lasts 24 months. In theory if they really wanted out after that they could just dump all the remaining shares.
The biggest factor to consider in this business, I feel is availability of financing. If they are able to obtain financing for all projects and stop issuing shares at a discount this will be a roaring success. There seems to be some buyer support coming in at these levels, but the sellers are still dumping. The sellers might run dry of their 2% allocation soon. But next month they'll top up with a 4% allocation.
If only the company had the cash reserves to buy back its shares. But unfortunately they didnt issue any shares for cash and only got properties. Worst of all the properties are mainly land requiring development which puts more strain on cash reserves.