Actually, I should have read Redant's post more closely...and, as a consequence, rescind my last sentence of the above post.
How (or why) would a company agree to issue 1,500,000 new shares up to 18 months in advance of consulting services being provided to the company?
Why is there a need for the consulting services provider to even request this type of remuneration in advanceof providing their consulting services? Even after a voluntary escrow of 12 months, there will be at least 6 months where the shares are issued in advance of work completed.
Given the 12 month's escrow, why not issue the shares (to the work value) at that time? For example, let's say the share price has climbed in value by double (my god - is that possible for CDY??) - then the amount of shares to be issued would only need to be circa 750,000 - or half what they are issuing today.
But no, instead - they agree to issue them now and, if the SP is double today's value then the consulting firm gets over $314,000 instead of today's $157k. This is crazy stuff. The Board must be students of the Central Bank and its "money printing" behaviour.
To be sure, I don't have a problem issuing shares in lieu of cash. My problem is they should not be agreeing to do it 18 months in advance of the work being completed. It should be done only once the work has been completed. In my view - this is tantamount to ripping off the shareholders.
I also note it was agreed to issue and issued on the same day. Why isn't this discussed at the AGM?
It is "typically" bloody scandalous!!
CDY Price at posting:
10.5¢ Sentiment: Sell Disclosure: Held
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