@justfriendauAfter being given more time to respond to what simply ' Popped ' out at me from an alert I received , here are my additional observations following my first response to something I had not seen before. Nothing untoward's there as I was simply sitting in my office at my desk at the time having a bit of tea before the ' Footy ' . So I just responded with what first ' grabbed ' my attention and thought I would post my observation on that point.
And isn't it almost strange folks that when you review the resolutions for the forthcoming general meeting in more detail. After doing so , I can't help but think the SYA journey of late has been nothing short of almost a ' Boiler Room ' mentality in so far as the quantum of issue of shares which have been seemingly given to every Tom , Dick and Harry.
And I mean this only in the sense that it seems that everyone from Jett Capital and Canning Corp , through Acuity , and the countless ' unknown ' sophisticated investors and international Institutions ........Everyone and Everybody are making a ' Quid ' here except the one ' Integral ' party who in the whole scheme of things is the most important party to the whole shebang . And that is of course I.Q ......and to a lessor extent the Sayona pre-existing employees as well as the ' New ' NAL employees per the recent organisational Chart.
So in regards to I.Q , they are either the silliest Organisation known to man and on Earth or this NAL deal is the BIGGEST ' Quid Pro Quo ' of what Sayona can do for Quebec and I.Q given it's $20 million in reciprocated $1 preferred stock and the fact that this allocation on its own has to return them at least a share price of approximately 35 cents just in order for them to return ALL their outstanding assigned loan capital.
And we know this is simply NOT the case as I.Q had just recently reported a 25..1% return for the 2020 -2021 Canadian financial which was represented by a record profit on their investment transactions of CAD $1 Billion. So I don't reckon they are in this transaction to deliver a negative or even a break even result for Quebec in the 2021 - 2022 financial ....... and all the while everyone around them are being issued discounted shares and selling them for massive profits while they wait up to 6 years before receiving a single cracker on this Investment. And I just don't think it works that way. Especially given the highly concessional treatment being extended on their side of the deal. So at some stage , this Asset will have to appreciate in value in order for them to receive back just their original Capital.
And lets look at some of the additional features of these upcoming resolutions which highlight the obvious ' Quantum ' of the I.Q return ' Conundrum '
So not only do we have Piedmont subscribing for a further $8 million of new shares in this SPP , we also have them being issued ALSO on 23rd August another 31,942,458 shares at a price of $0.04975 per share and raising a further $1,589,137 in working capital. Interesting that this component of additional ' New ' Piedmont shares will officially take it's holding in Sayona to 19.9 % according to the General Meeting explanatory statement on this resolution.
Then there are the 18,666,666 Options being issued to Jett Capital Advisors LLC with these Options having an exercise price of $0.0145 per Option and which expire on 21 March 2024. and were issued in retrospect on 31 May 2021 and which will ultimately raise a total of $270,666 if and when they are converted. And I note that to date , there has been NO conversion of these ' in the money ' options as yet......so good sign in itself I should think. ie The longer they hold these , the more value I suspect they think they can get based on where the current SP is sitting.
They ( Jett Capital ) are also being issued 13,200,000 options per resolution # 8. which also have an exercise price of $0.0145 per option - but in this case , they expire exactly 3 months from the date of the meeting or 17th November 2021 and raising $194,400 in potential working capital and being put towards the NAL acquisition as stated by the Company as the purpose of. So I would look for these to be converted with a notice being forthcoming in more the nearer term side of things. Something to keep an eye on anyway.
One of the most interesting omissions from these resolutions are those which were highlighted as far back as May 3rd ( see attached ASX notice ) , which were supposed to be issued in
" settlement of performance conditions under employment agreement agreement ( duplicated.... 
) "
So I find this rather intriguing that the 52,500,000 which had a notional price of .008 cents and the 7,500,000 SYAA options with their notional 1.33 cent estimated conversion prices have been left out of the general meeting approval process given they had previously estimated they would be seeking approval around the 21st June 2021.
Is this because they want to revisit the terms of the determination value , or is it more a case of them wanting to expand the offering to take into account ALL new employees following the close of the NAL transaction and more towards the Annual AGM meeting. The effect of differing this even more though is the simple observation that employee's who perhaps were entitled to these shares and options at these prices are now unable to cash in .....even considering it is a new Australian Tax year and the liability of any gain has now been deferred to June 2022 and beyond.
I suppose though if you are getting these shares at .008 cents , then you can afford to wait that little bit longer while some of the newer employees are being sign up for whatever agreed price they ultimately decide upon. Maybe they thought given the prices being paid in this SPP that it would be a bit cheeky to ask shareholders to approve a gravy train of significantly discounted shares on top of the already discount SPP , and that they could ill-afford to muddy the waters by potentially upsetting shareholders any further.
Who knows , but I guess if it means that ultimately the newer employees will be offered shares at much higher prices then it could be seen also as a good thing.
(20min delay)