SAS (ASX) 2018 AGM

Originally posted by Lebba: ↑

That was my thought too. SAS has worked too hard up to this point to fail now.
One way or another, we will get the funds we need to get the constellation up.
How we get the funds is the big question and concern on everyone's mind - if it is a CR, then so be it.
Better having a CR and possible dilution than total failure due to lack of equity.

However, I would appreciate if someone can clarify the following for me....
On 18th May, there was the following annoucement: SAS founders committed an additional escrow period.
The announcement mentions....
Sky and Space Global Ltd (ACN 117 770 475) (the Company” is pleased to confirm that the founders, directors and executive management, have confirmed their commitment to not sell any equity holdings they own or control (directly or indirectly) about to be released from escrow, unless to help facilitate a major investment in the Company by a key strategic investor at a time in the future. This voluntary lock up commitments represents approximately 1,000,000,000 of ordinary shares in the Company, which is in excess of 55% of the total shares on issue for Sky and Space Global. This commitment has been entered into by the founders and directors of the Company to clearly demonstrate their true belief in the Company’s future and business plan. It has also been designed to show their commitment to the Company’s technology and the potential future value they believe they can help grow and create for all SAS shareholders.

Correct me if i am wrong, but my understanding is that these shares are now ORD shares that can be transferred to an investor (possibly at a discount), at the same time not diluting the company further, since there is no further issue of shares.
Is my understanding correct?

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That is correct, the previously escrowed management shares are now ordinary shares. As has been discussed a number of times, the founders could sell these shares to raise funds, but as the proceeds would belong to them, it would require them to then lend those funds back to SAS to fund the Pearls and operations. The terms or arrangement of that loan to be determined.