re: Ann: Priority Entitlement Offer to Existi... I don't think...

re: Ann: Priority Entitlement Offer to Existi... I don't think your advice is good. As GBZ holder I don't think the proposed options deal is fair (it discards shareholders). I won't be voting in favour of it. What will I get? Null. Sorry - 'Big Red' in my portfolio, due to sp going down, down...

Disappointed. Will see whether or not that unfair deal will become true - hopefully not. While investing in species like GBZ, every shareholder or option holder takes a calculated risk. However, options holders take an additional risk because options might expire with or withot the ability to exercise them. In this case the options should lapse, if they were not exercised. If the company required the additional capital they should raise money using a formal way.

My conclusion: GBZ management is looking after their own and options' holders interest (who are not shareholders). As such, the management is acting against shareholders' interest and also against company's main goal, which is ' to add value to shareholders'.


nj