'A $3 million loan is 10% of the company value.A couple more of those and he's up to 50-60% of the company'
There is still one year to convert the loan into equity. If the share price doubles, 3 million will be 5% of the market cap. The MD wants to have a higher ownership, so the company won't be a hostile takeover and he would have a higher bargaining power IMO
Looking at the changes in his position: He spent $300k converting his 20c options He spent $2,030,000 buying shares at 16.5c.
He uses every opportunity to increase his holding. He may even start buying on market again?
EM2 Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
