Originally posted by OzJ
What does this sentence mean?
The performance milestones for the performance shares that the 2 new directors are entitled to specifically say that the performance shares will convert to ordinary shares when $50m funding is secured & a telco partner is found, amongst other ones.
The thing is though, it doesn't look like the 2 directors have the performance shares yet, nor have they been approved by shareholders, as they are still subject to shareholder approval.
So say if 50m was secured tomorrow and large telco signed, the 2 new directors would not receive these ordinary shares, as they dont have the performance shares yet to begin with! Perhaps they can issue performance shares retrospectively (ie - $50m tomorrow, performance shares issued in 3 months time, and that milestone is automatically met and the performance shares automatically vest in to ordinary shares), though I'm not 100% sure on this.
logically thinking, you would think they should have the performance shares first, prior to any of these milestones being met?
What are your thoughts?
