Georgia Gulf Amends Registration Statement Again
Georgia Gulf (GGC) got creamed again today, down 5%. Olin (OLN) was down 2.4%. I have been selling GGC outright in addition to the pair position I have.
They amended their registration statement for the new shares (released a new S-1/A) again today.
In big red letters, the statement says, "The information in this prospectus is not complete and may be changed. The selling stockholders may not sell these securities until the Registration Statement filed with the Securities and Exchange Commission is effective."
I believe that the SEC has to declare a registration statement effective. I think that these amendments cause delays in the process.
It seems like they are deliberately amending the registration statement in order to keep the new shares off of the market. They have previously amended it on October 7 and September 25. The original was filed on September 8.
Anyone with more securities law experience, please comment.
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5 comments:
The Dean has done his homework on S1 registration statements and understands that only once a registration statement becomes effective can convertible note holders request new issuance of shares from the company's transfer agent.
While its against securities laws, its not uncommon to see note holders shorting the stock before hand and then cover their position with the newly issued shares.
While its against securities laws, its not uncommon to see note holders shorting the stock before hand and then cover their position with the newly issued shares.
Gee, what a surprise.
That is probably not going on in this case as there is no way the big holders could borrow enough shares to hedge their positions.
I got a call today- my broker is forcing me out of my position.
Who is your broker?
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