I don't think JH has pride, it's more like "FRONT" How can JH as chairman and CEO have any pride in his captaincy when YPB, the company he founded has, in a little under 10 years gone through over $85m of share issues and monies raising and racked up over $85m of accumulated losses, with nothing to show. March quarter 2024 sales were $119,000, a number not even a street corner milk bar would be proud of.
As I see it YPB is JH's own "ATM". In recent years, we even had the spectacle of JH paying himself in a year more than what YPB racked up in sales revenue. That's right-JH and his entities provide loans to YPB so he can get paid, his $2.25m loan on an annual basis at the last published interest rate of 17.48% would be earning JH around $393K per year in interest alone. He has other perks per his remuneration package. For the debt to loan swap proposed at the AGM, JH gets 500m of options at 0.3c with a 3 year term when the mandate with FPC provides for free standing share options at 0.5c on a much shorter term. These are just examples of how JH being both the lead manager for YPB and JH's entities allows himself to help himself to the best deals, and deals that never get offered to anyone else.
Today's AGM where they will vote and approve the conversion of $2.25m of loans made by JH and his entities into YPB shares was not being done at arm's length, and clearly is an abandonment of the fiduciary duties of directors of YPB that they have agreed to a debt to share conversion price of 0.15c per share when the terms of stage 1 of the CNI was to have an absolute floor price of 0.2c. This means that YPB has to issue 166.67m shares more than what would be required if the negotiations between YPB and JFHH et al were at arm's length. The additional 166.67m shares to be issued affects all other share holders due to it dilution impact and putting downward pressure on YPB's share price.
Resolution #10 appears to be included for the benefit of JH. It provides for YPB being able to borrow up to $500k without seeking shareholder approval ever again. It comes with generous free standing share options, and my bet is that once this resolution is passed at today's AGM this will come into play very soon with JH providing loan monies.
YPB Price at posting:
0.2¢ Sentiment: Sell Disclosure: Not Held
(20min delay)