EGM to hand half the company to its directors?
Surely this is a joke.
A small company decides to pay its officers $525,00 , $525,000 and $275,000 - PER YEAR?
Which worker is worth that much? You'd have to be the second and third coming of JC to be worth that much in my view.
And while it's good that they will take THIS YEAR'S salary in shares the conversion rate is amazing, but how will they take NEXT YEAR'S salaries?
Here's the conversion rate: 2.5 cents per share for the full amount of salary, being
21,000,000 ; 21,000,000 ; 11,000,000 ordinary shares
PLUS 42,000,000 ; 42,000,000 ; 22,000,000 free 5 cents options
PLUS 42,000,000 ; 42,000,000 ; 22,000,000 free 7.5 cents options if the earlier options are exercised.
My ultimate decision to buy into this company was that my research (Appendix 3B) showed there currently are only 401 million ordinary shares on issue.
If the above get granted and exercised that would add 265 million shares to the share registry! That on its own is alarming (so is my maths - that's well over half the company as it stands at present) - but wait, there's more - then we have to consider that next year these same people would expect half million dollar salaries again!
Disgusting!
I wouldn't have bought in if I knew that this was about to happen.
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