Ann: Acquisition of LIFX and Share Placement, page-274

If I was incentivised with free performance shares strictly on the revenue metric, that's exactly what I would do too, i.e drive sales with huge discounts. LIFx management are getting this , and if the business doesn't get enough cashflow , well there is always another round of CR from loyal shareholders. They are least affected- see this is what a number of microcaps are doing, check out how SAS expanded its share base to another height. Management and directors take in terms of high compensation and performance shares and their modus operandi to keep loyal holders like yourself sustain interest in the company to avoid a sharp sp sell off. They are likely to come out way better than the majority of you . And when acquisition price is not prudent and excessive, no one really has much oversight into what actually makes up those numbers - just as in the Paladin affair (see my post in Its Over) article in AFR today.