Minority Shareholder Diluted
I am an minority shareholder in a closely held corporation. An initial private placement was made last year but not all the shares being offered were sold. Now the company is making a second private placement but the majority owner of the corp is diluting the existing shareholders for the new offering. Should't he sell the remaining shares of the first offering before diluting the first round investors.
1 Answer from Attorneys
Re: Minority Shareholder Diluted
I would have to look at the first private placement offering document. Did it make any provisions for extending the offering period or scenarios for a second private placement? Please feel free to call me to discuss this. ph. (972) 231-5500 or (800) 303-0720