The letter has been sent probably because they haven’t raised enough money. They must have to raise a certain amount otherwise they may have to return the money that they have raised.
Without John Greeves, the managing director, taking a pay cut then I will not invest any further money in this company.
John Greeves earns $500,000 a year from myg.
With a salary this high he has a massive vested interest in keeping this company going for as long as possible even if he believes that the company is going under.
The total salary payment for mutiny gold per year is $800,000 so the funds raised by these options will cover salaries for another year.
If john Greeves gives up his salary for the next two years to keep the company going and relies on increasing his shareholding value for remuneration then you can guarantee that the company has a bright future. No one is going to bust their gut for 2 years for nothing on a company they think is going to go bust. This will also give banks more confidence, and I would by options.
MYG Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held
