Originally Posted by
jayme
You forgot about the reverse stock-split. Something like 7.2:1.
The 3M loan was forgiven.
So the 1.75M shares, divided by 7.2 (the reverse split), multiplied by the expected price around $23/share is about $5M.
The split has nothing to do with it (you are actually doing the split backwards as there are 43 million shares outstanding after the offering). Nor does longevity or profitability.
"VX Employee Holdings, LLC, a Virgin America employee ownership
vehicle that we consolidate for financial reporting purposes will sell
231,210 issued and outstanding shares as a selling stockholder, and
we will distribute the gross proceeds, which we estimate to be
$5.2 million, based on an assumed initial public offering price of
$22.50 per share (the midpoint of the price range set forth on the
cover of this prospectus), to eligible teammates, which do not include
our officers. We will pay the underwriting discounts and expenses of
VX Employee Holdings, LLC in this offering. We will not receive
any proceeds from the sale of shares by the selling stockholder in this
offering."
The LLC is SELLING shares as part of the IPO and the proceeds of the sale will be distributed.