Aug. 17 at 3:13 AM
$HUDI - Just and FYI -
The "Baby Shelf" Rule: Why HUDI's
$100M Shelf is RestrictedBecause HUDI’s total public float (the value of shares held by the public rather than company insiders) has dropped to a tiny
$3.91 million, they are legally blocked by the SEC from using the vast majority of their
$100 million shelf.The Regulation: Under strict SEC guidelines known as the "Baby Shelf Rule" (Instruction I.B.6 of Form F-3), any company with a public float below
$75 million is heavily restricted.The Limit: They cannot sell more than one-third (33.3%) of their public float in any rolling 12-month period.The Available Dilution: One-third of their
$3.91 million float means HUDI can currently only raise a maximum of ~
$1.3 million using their shelf right now. They cannot tap into the other
$98.7 million unless their stock price and public float undergo an astronomical, sustained rally.
