@ mg97788 - For the most part, I agree with your post.
If you look at things objectively, then there is a lot of "good stuff" happening, and the company is not too far away from success.
I have pointed out a number of times that the 4C's are definitely heading in the right direction - it shouldn't take much to get to cash flow positive, and "conditions" around the world should have companies & individuals crying out for these GMV products.
But the latest huge amount of performance hurdles has really knocked the stuffing out of me - it has really got me thinking about how greedy this management team actually is in this instance?
And this is not something that I have ever thought about Dr Geva - who I have always thought would put the company first (loaning the company $ when required, converting his loan funds at higher prices etc).
I sent this email to Dr Geva tonight (this is the first time that I have ever contacted him or the company), and it will be interesting to see if I get a response.
Dr Geva
I have been a shareholder of GMV for a few years, and I have steadily built a sizeable shareholding in this company.
I have been a constant supporter of GMV, and have stood up for this company on forums many times through the years.
Even though there has been let downs quite often along the road, I always felt that you were working towards the same end goal. You have often put your own funds in when required, and you have appeared to only sell shares when absolutely necessary.
However these latest massive amounts of performance shares for all management & yourself at the upcoming AGM (based purely on some really low market caps) have floored all your Australian shareholders.
Therefore, as a direct consequence of the proposed resolutions at the upcoming AGM, I am writing to tell you that you have now either already lost or are losing their faith.
The feeling from the overwhelming majority of retail shareholders is that these huge amounts of performance shares (which should be fairly easily attainable in this present COVID induced client) appear to be pure greed on managements behalf - and for the first time we are all seriously wondering whether this management team are here to line their own pockets at our expense???
As previously mentioned, I have never had these thoughts about you before – as I thought we were on the same team?
But what justification is there for you and your management team to receive such huge amounts of shares – when GMV just needs to get back to market caps levels that it has already seen relatively recently??? And it gives you a whole 3 years to get there?
I will be voting no to all these resolutions – and many others have indicated the same. It would be different if the market cap levels in the resolutions were significantly higher – but it appears that you have set them purposefully very low for you and your team.
How can you justify so many performance shares when the SP is virtually at all-time lows, the SP is well below IPO prices (it is currently only approximately only 25% of the IPO price), the 4C’s have showed virtually no revenue increases (or product sales) for the last 12 months, and there is no evidence of sales having actually being made in the past few months (despite receiving so many approvals & despite so many deals being announced).
Dr Geva, I implore you to revise the performance hurdles significantly upwards for these performance shares. And I am talking a market cap increase of at least 50% for each performance hurdle (eg the $100m market cap “hurdle” becomes at least $150m market cap)
This will go some way towards appeasing your loyal shareholders that have stuck by you over the past years.
I would very much appreciate a reply to this email – as we are currently deeply in the red, and we are hurting badly from these latest AGM resolutions.
Thanks in advance.
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