Rico..

Your little scheme of buying shares on the open market at .50 and reducing the float can be accomplished by buying the shares back and putting them in escrow...

That means they are still accountable on the float ,but they belong to the company..and are not traded on the open market..Those shares which cost the company .50 today could then be used to our advantage when we buy claims..or other properties to issue as part of the purchase price...

Now what are the advantages and the cons.. of doing this...

Regulators must be notified when releasing escrow shares..

Instant gratification of share price rise..reduced float...capital gain when they are used out of escrow,if the share price is above the .50 acquired price which can be used against the company's capital loses,which we have tons of capital loses ..and no dilution of the float when they are brought back out of escrow...

Now the con side...???any one else think of any this morning..??

(The cost to the company of issuing shares is basically .00 but the float increases on a new issue,which dilutes the float..)

Escrow shares do not increase the float but are part of the float but not the trading part...and there may be an escrow bank already set up ...issued at .10 on the initial public offering..or what ever the IPO originally came out at..

I would have to dig into the financial s but I can't remember seeing an escrow account..

Here is what escrow is all about..

Escrow shares and free trading shares of the same class of security are reported on an aggregated basis. Escrow shares are issued and outstanding shares which, while entitled to vote, may not be sold or transferred unless regulatory approval is obtained or the shares are released from escrow.

Transactions in these shares must also be reported. Within SEDI, the number of shares in escrow and the release terms are to be disclosed in General remarks. You do not need to report a release of escrow shares as a transaction, as the release does not result in a change in your holdings of the class. Although you are not required to file a report because of an escrow release, you should provide information regarding the release in General remarks when your next report is filed.

In addition, since escrow shares are part of an issuer's issued and outstanding shares, they are included in the calculation to determine if someone is an insider by virtue of holding more than 10% of the voting rights attached to all the issuer's outstanding voting securities (or in Québec, 10% of a class of shares).

So that is the word this morning..

Ribs and Ripple tonight..

Portee