...boils down to your interpretation of ethics, integrity, the fact whether you agree that they are keeping fellow shareholders in the dark...and still deemed to be milking shareholders every moment they get....feeding the narrative & bad optics....
...you & I know both that only forensic accountants will be able to determine real eligibility of this... not even the year -end auditors will be able to determine this without looking at every transaction.... acquiring non-accretive companies to boost revenues tend to be problematic when you have revenue related performance share targets...especially if there are also related party transactions post acquisitions- I think we both know what I mean.... i.e. you can't acquire a company that are also 'delivering' and add that to your performance targets...those performance targets were all about organic growth, not via acquisition or merged synergy...
...bottom line: without audited stats...and a breakdown of 'non-related party' & 'true legacy' revenue ...difficult to say whether they were legally allowed to do this....but ethically....it is a big 'no-no' at this stage... they still had 4 months left before these performance shares were to expire....they are still currently being investigated by ASIC for this type of behavior... so connect the dots for the real impetus for doing this now... optics are not good.... especially when you are supposed to buy back public perception...
So, yes ...substance over form....compensating yourselves (Bane & Joel) ~$9M each in Jul 2020 when the company is bleeding $44m cash per year (Q4 extrapolated)... running out of cash....being sued for fraudulent misrepresentation....and with a share price still >80% down since last share issue ....is deemed unethical!!!!!
....all I know...I would done things differently: 'what the right thing is to do' by taking into account the timing of accepting 'performance related' pay ... diluting valuation/ share at this stage should be the last thing you want to do if you were to be working for all shareholders...not just for yourself....
...but hey....I guess people's ethics are different... my view is that it is all about integrity & respect when you are in the privilege position managing other peoples hard earned money....
...my two cents....
GSW Price at posting:
83.0¢ Sentiment: Buy Disclosure: Held
