These guys are owed a couple of loaves of bread each but they may actually end up receiving a big part of bakery.
As at last Annual Report, SOI is around 809,000,000, let's call it 900,000,000 with the two placements. So, the "Employee Incentive Scheme" at 150,000,000 equates to approx. 14% of MMR.
Problem is, based on the last SP, it is for a total of $600,000.
If we accept the $ values owed are correct, and a contractual obligation, the real question then is the process.
I think the process could be improved.
David is a Corporate Finance expert. Surely a more equitable alternative is possible. For example, a Convertible Note type product if Directors really want cash, something that can redeemed post the recapitalisation? Or if they prefer shares, converted to equity once MMR relists and a current VWAP can be used as a benchmark?
Just tossing ideas around here.
@rogerd you are pretty good when it comes to this sort of stuff, what do you think?
MMR Price at posting:
0.4¢ Sentiment: Buy Disclosure: Held
(20min delay)