malta, I had thought the 2 doctors held about 45% of the stock but didn't they recently bail out of half at about $3.20?
As far as I know they now control about 22%.
As for a takeover anything is possible but I would imagine there would have to be better evidence of a sales ramp up before much solid interest would appear.
There's many ways a predator could get around the directors 22% shareholding, depends how attractive the offer is to them. Not so much the $ price offered for their shareholding as what the other conditions would be.
Say they were offered the chance to keep CST intact as a division of the bigger company, unlimited support both financially and for research, the marketing and financial systems and clout of the bigger company, very attractive option packages depending on performance of their division, substantial "golden handcuffs" each ($10million?), $1 million+ p.a. salaries under contract instead of their very low present salaries of about $140K.
Would bear pretty serious thought.
Even if a predator only got 30 to 40% that's still effective control, nibble away under the creep provisions each year, keep the earnings of CST as low as possible thus controlling the shareprice, anything's possible I guess.
regards, EB
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