Correct me if im wrong please as only going on what I think I saw from memory.
JTC revenue last year was 1.8 million?
So 2 million cash is only just above one years revenue to buy the company essentially?
Which is a pretty low purchase price for a business of any kind.
And yes they are getting the equivalent of 1% of xped as well. Up to a further 1.5% if revenues continue to improve. Xped, gets ownership. In totality?
I also imagine Xped in general knows the potential future revenue buy adding their own patented tech into the JTC line up. Potentially drastically increasing their revenue (lets face it thats the only reason any of the elusive chip companies would want anything to do with it).
So, to me at least, from the outside, it looks like a cracking deal. Giving shares to major management is standard practice and I actually dont think 2.5% of the company is really that much to someone possibly running a revenue stream in the multi millions for them?
As far as the management milestone shares, we would have nothing without them. At all. So I don't actually have a problem with them gaining more shares in payment once milestones are reached. Incentive to pursue the goal but also means we are not paying them cash from the coffers. I have no idea what Johns salary would have been at qualcomm but I bet he didnt come cheap. Fair trade IMO. Plus, that was all in the prospectus we voted on (if you were in back then) prior to the RTO. I think the 150 million shares was generally considered fine if they reached the milestones. Especially considering everyone thought it was fine to give 640 Million shares to aquire Xped in the first place....
So I dont know. I think complaining to the company about it would waste the valuable time they are already spending building something awesome.
Plus we pretty much voted to agree to most of this ourselves, because it was a fantastic deal. You can tell by the companies lining up to get on board and the rising stock price in your portfolio.
Last but not least, again just an opinion. I pretty much disagree with your assertions that any of this is bad. Its all either good news or fair payment for the services or connections rendered in my book.
Everyone is getting wealthy together while a little Aussie tech company takes over the world
(20min delay)