I believe the convertible note holders were likely unsettled by the significant price drop, although they are presumably bound by the terms of the note itself. However, if the company is out of cash, funding legal bills may prove to be a significant challenge. We should have more clarity on the situation today. If the suspension isn't lifted by then, it's possible the note holders have been deterred.
Like many others here, I believe the CEO's position is untenable given the circumstances. The spending at PGY has been appalling—I've never seen a company raise such substantial capital consistently, only to miss deadlines and deals.
Doesn't it stink to high heaven that Pilot requires $1.5 to $2 million annually just to cover salaries, which now represent 25% of the company’s market capitalisation. Additionally, it’s worth noting that the CEO's compensation is not tied to share price performance. In 2022, the board decided to disconnect the CEO's remuneration from share price appreciation and instead link it to a royalty structure. This raises serious questions about alignment with shareholder interests and is likely one of the reasons so much dilution has occured.
"As part of Brad Lingo’s employment services contract, it was agreed at the time to provide an Over-Riding Royalty Interest (ORRI) over the anticipated clean energy projects. In September 2022, the Board approved the ORRI agreement which provides for a 2% royalty of the gross revenue from all Sale Agreements with Greenslate Energy Pty Ltd (a related entity of Mr Lingo) relating to the Mid West Clean Energy project."
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