My former post didn’t attract any comment, so I am reposting it here.
Post #:31447489
What if the funds from the recent cap raising (or any future raising) were earmarked to pay up to US$400,000 to an employee for accrued losses on real estate (ie, a poor investment decision)? What would you think about your hard-earned shareholder investment dollars being used to fund these types of management commitments?
It seems to me that the company is running before it can walk in making such commitments. We are not an industrial leader with billions in the bank. This commitment doesn’t appear to fit within the remit of a high risk, start-up. IMHO.
What is the rationale behind note 4 of the accounts? Who is the employee? What would the exceptions be? Unlike Australia, this sort of money buys a fairly substantial house in the US.
NOTE 4: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Under a resale price commitment agreement between the Company and an employee currently in the process of being finalized, the Company has tentatively agreed to reimburse the employee for an amount yet to be determined (ranging from US$200,000 to US$400,000) in lost home value if the employee were to sell their home at a loss on or before June 30, 2027, subject to certain exceptions. The Directors are not aware of any other contingent assets or contingent liabilities as at 31 December 2017.
Nursery, I thought you might have something to say, given your corporate and directorship background.
If I have missed the point, or don’t have one, let me know.
BL
(20min delay)