Blackstone Code

After people's applause almost stopped, Lynch raised his hand and said, "I have the second thing to announce. We are going to increase our share capital."

"We will use the closing price of the last day as an important basis for reference. After evaluation by two consulting companies of Bupen, the current market value at any time should be between 380 million and 400 million."

"We'll take the middle number, which is 390 million."

"You must be very clear about what happened to the company in recent times. It is precisely because our raw material channels have been restricted by others, so even though we should occupy a more important position in the transactions between the two parties, we still lost Initiative.”

"In order to solve this problem and give people more confidence from many aspects and let people believe that we will not fall, it is inevitable to increase our share capital."

"The increased equity capital will be used primarily to solve the problem of limited raw materials and establish new research institutes."

"Since Mr. Wardrick and I have the same opinion, we already hold more than half of the shares, so this matter can be finalized without discussion and vote at the shareholders' meeting."

"We initially plan to add 390 million worth of shares, and all shareholders can subscribe in proportion to the shares they hold."

"This part of the funds will flow directly into the company's public account and will be subject to the supervision of the shareholders' meeting, the board of directors and myself."

"It doesn't matter if someone is unwilling to subscribe. The extra shares will be further distributed to shareholders who are willing to subscribe until the end."

"We have a week to think about it and after a week we will make an announcement."

"Do you have any opinion?" After Lynch finished speaking, he looked at Mr. Wardrick, who shook his head and agreed with Lynch's decision.

This change made many people's expressions become very unnatural. To put it simply, this increase in equity means that each person has to spend the same amount of money to maintain their voting rights, no matter how much equity they hold.

Indeed, after the increase in share capital, they held more stocks in their hands. The wealth only continued to exist in another form, from the federal sole, the specific currency in circulation, to the company's stocks, with equal value.

But in fact, their voting rights have not changed at all. A person with 1% of the voting rights still has 1% of the voting rights after spending 3.9 million. It is not because he spent 3.9 million. , the voting rights will change from 1% to 2%.

This is actually very rogue, and it is also the most direct and effective way for capitalists to continuously embezzle small and medium-sized enterprises. I will throw money at you to death.

Once those start-up companies become successful, large and small shareholders will demand additional stock issuance and expansion of equity capital, and the purpose of doing so is to kick out the founders.

The success of a startup does not mean that the founder also has money. Let’s give a simple example.

A founder creates a company with a market capitalization of $100,000.

Several investors invested 900,000 yuan, but only got 30% of the shares. When they invested, they had a requirement to buy shares at a low price, and then more money entered the company's account in the form of capital increase.

Many founders don't care about this. In their view, when money goes into the company's account, it also goes into their own pockets, because they always hold the most shares.

So the company now has a market value of one million, with the founders holding 70% of the shares and investors holding 30% of the shares.

At this time, the business was successful and the company's market value increased to 10 million. The founder's shares remained unchanged, which also meant that he was worth 7 million.

However, when investors require capital expansion, there are usually clauses or stipulations in the initial investment contract.

They invested 100 million in one go.

At this time, the "seven million" in the founder's hands was actually just the value of the shares in his hand, and he could not afford more money to continue investing.

His equity was diluted from 70% to 6%, and he was almost not even qualified to attend the shareholders' meeting and could only attend as a non-voting witness.

Naturally, what he said is just nonsense to the company. Those investors can easily decide who will be the president, and even decide whether the founder's equity has voting rights.

They can even force founders to sell their shares through some legal or illegal means!

What if founders keep up? So if he wants to keep his equity unchanged, he must come up with at least 230 million in additional funds to ensure that his equity is not diluted.

Even if he can get it out in one round, what about the second round?

What about the third round?

When he is kicked out of the board of directors and can only attend the shareholders' meeting, investors can use some simple means to transfer the funds away and keep the equity unchanged.

As it stands now, Lynch made a bet, and others must follow if they don't want their voting rights to shrink.

They have to raise a total of 390 million to ensure that their rights remain unchanged.

But...what about next time?

What about next time?

The expressions of all shareholders have changed, including the expression of the manager of Rongsheng Financial Bank.

He originally thought that when the company was acquired, even Lynch should focus on defense, such as using funds to compete with other hostile acquirers to bid for the shares held by shareholders.

What he didn't expect was that he would increase his share capital as soon as he changed hands, which forced the acquirers to follow suit.

If they don't follow, the shares they spent a lot of money, energy and more favors to acquire in the early stage will immediately be reduced by half!

If they want to follow suit and convert almost 30% of the tradable shares into non-tradable shares, they will have to spend more than 100 million to maintain the same.

And what Lynch did was spend almost this much money.

This is an example of using one's abundant wealth to burn money compared with others!

What is even more irresistible is that Mr. Lynch and Mr. Wardrick hold more than half of the shares and can make resolutions without the consent of the shareholders' meeting. They don't even have room to resist!

For a while, the conference room fell into silence, no one spoke, and everyone was thinking about gains and losses.

Lynch then announced some of the company's new plans and development directions, including solutions to tobacco leaves.

We will always use "black gold" tobacco leaves produced in Nagalir as the main raw material in the future, and we will tell everyone that the company has signed a supply contract with an agricultural product company in Nagalil for twenty years.

All the tobacco leaves of the other party are only used to supply the needs of every moment, and will not be sold to outsiders, and the price is low...

After the meeting, Lynch was not in a hurry to go back. Instead, he called the shareholders of Tomorrow's Light Investment Company one by one that there would be a meeting tomorrow.

This is also how it should be.

Lynch's own private increase in shares is his own business, but if Tomorrow's Light Investment Company wants to keep up, it will also have to pay for it.

Public is public, private is private, capitalists’ excuses are damn easy to use.

In the evening, Lynch sat with Mr. Wardrick and Severella, and Mr. Wardrick invited Lynch to dinner.

Although it seems that Lynch took the initiative to send these 5% shares to Mr. Wardrick, in fact, without Lynch, Mr. Wardrick would have had to spend some effort to buy these shares.

And these stocks did not fall into the hands of Mr. Wardrick. Lynch played a little trick and used some words.

In fact, Mr. Wardrick only holds 0.1% of the shares, and the remaining 4.9% is in the hands of Severella. This can be regarded as a small gift from Mr. Wardrick to his daughter.

This is really annoying. When will this kind of small gift be available to ordinary families?

Enjoying an expensive dinner in a very harmonious atmosphere.

Severella put down the wine glass in her hand and asked softly, "What are you going to do next?"

“Kick out the people who don’t belong in every moment and get them back on the market.”

After Lynch finished speaking, Mr. Wardrick's eyes revealed a look of appreciation.

He thought Lynch would say something else, but he didn't expect that he would talk about the listing issue as soon as he came up. This also proved that Lynch has never changed and is still the little fox who skates.

As a young man, Mr. Wardrick had owned a private business, which he thought was the best thing ever.

He is like a king giving orders in the company. No one can object to his requests. Even if people know that his requests are wrong, those people will still comply with them.

Because he is the only king in the company, and no one can disobey him.

That feeling... was unforgettable, but it was not the right thing to do. Later, his company was sniped, and the family behind him did not provide him with assistance. It was not until he had to agree to other investors taking shares that his family took action. helped him.

This also made him understand that no matter how strong a person is, if he does not want to be ostracized by the entire society, it is best to abide by the rules of this society.

It restrains the strong and protects the weak. In fact, the opposite is true. It is also a kind of protection for the strong, protecting the strong from being eaten by the weak who gather together.

Of course, this also requires that you have enough ability.

He thought Lynch would be obsessed with the power, but now he seems to be sober.

Once it is re-listed, the stock price will definitely rise all the way, even exceeding the previous highest price. This is the reason for "correct capital". Everyone wants to make money, and you must also allow people who are qualified to participate to make money.

Severella didn't have that much emotion. She was a little unbelievable, "Is it that simple?"

Lynch nodded, "So what do you think, how hard should it be, or should I do something else?"

Severella did not continue speaking, but carefully savored the content of her conversation with Lynch, and the content of Mr. Wardrick's conversation with her.

She began to gradually come into contact with business matters. After all, Mr. Wardrick was getting older and he could not always make the decision on his own. Someone needed to take over his job, and his daughter was the best candidate.

Watching his daughter grow up in every incident, Mr. Wardrick felt a little emotional.

God did not give him a boy, but gave him a smart girl -

In fact, there are many terms and restrictions on financing, and there are even many gambling agreements. The situation is very complicated. The examples here are just distances and do not have any actual value.