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Vringo (VRNG) -12.4% to $4.60 after taking advantage of the huge run-up seen over the last two...

Vringo (VRNG) -12.4% to $4.60 after taking advantage of the huge run-up seen over the last two days to announce a 10.3M-share stock offering at a price of $4.35. The offering will take place on Oct. 9, the same day Vringo enters court-ordered settlement talks with Google. The IP holder claims the sale, which will yield gross proceeds of $45M, will leave it in a "position of strength" as the talks commence. (prior offering)
Comments (8)
  • surfnspy
    , contributor
    Comments (415) | Send Message
     
    Ok, I'll admit, I don't know how giving existing investors more shares strengthens their hand? Someone care to enlighten me?
    5 Oct 2012, 10:39 AM Reply Like
  • caddy311
    , contributor
    Comments (154) | Send Message
     
    believe they meant the sale, the cash gained from the sale, would leave them in a position of strength (i.e. should additional cash be needed to fund the legal dispute, etc,).
    5 Oct 2012, 10:52 AM Reply Like
  • surfnspy
    , contributor
    Comments (415) | Send Message
     
    Clearly, I was over-thinking it. Thanks.
    5 Oct 2012, 11:03 AM Reply Like
  • mccartjt
    , contributor
    Comments (21) | Send Message
     
    It may be that even though MSJ has been dismissed, that Google refuses to play ball and wants for some insane reason to go to trial. Personally I don't like to see dilution of my holdings, although with market pricing currently reaching back up to $5.00 the respite in price earlier this morning has somewhat abated.

     

    The $30 PPS number for Vringo now looks even harder to achieve. However with out full knowledge of the proceedings how can we investors make intelligent decisions??
    5 Oct 2012, 11:02 AM Reply Like
  • menzies
    , contributor
    Comments (3) | Send Message
     
    Another story mentioned '5 unnamed existing institutional investors'. http://bit.ly/OajKx0

     

    My theory is that these 5 investors are the owners themselves. They currently own a minority share, and are thus vulnerable to buyout. If they sell more shares to themselves, they dilute the overall shareholder value, but I believe the 10.3M shares would put the owners at or above 50% ownership. So, they put themselves in a "position of strength" as the talks commence by having control over the company to resist a buyout, which may benefit shareholders for the option to go after other defendants. I am long(er) VRNG.
    5 Oct 2012, 11:19 AM Reply Like
  • Aintnobody2
    , contributor
    Comments (43) | Send Message
     
    I thought they were the legal team.
    5 Oct 2012, 12:15 PM Reply Like
  • menzies
    , contributor
    Comments (3) | Send Message
     
    Could the 5 unnamed existing shareholders that are buying the 10.3M shares (http://bit.ly/OajKx0) actually be the owners? Would this give them majority stake?

     

    That would strengthen their negotiating position as they would be able to better resist a buyout, wouldn't it? As for the timing, they get majority stake right before the negotiations.
    5 Oct 2012, 02:17 PM Reply Like
  • QuantRec
    , contributor
    Comments (438) | Send Message
     
    this is all shorts will win over next month besides a 'free ticket to bankruptcy': goo.gl/F8EVV

     

    (free dirt with worms)
    8 Oct 2012, 12:08 AM Reply Like
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