I applaud the injection of new talent into the struggling RAN team but the terms given to the new CEO are outrageous and very orientated to short term success at the expense of long suffering shareholders.
-12 million short term options, cash settled with a strike price near all time lows.
-a big slice of EBITDA, indefinitely
-a slice of every pallet sold with a VERY low sales threshold. In fact the threshold would appear to reward him for selling fewer pallets than required for break even.
Where is the incentive to build a business for the future as opposed to enriching 1 individual for a couple of one off wins.Very dilutive for existing shareholders who have so far suffered all the pain of a more than 90% loss of value.
I have been a supporter of RAN to date but this appointment and its rapacious terms strikes me as either an act of desperation or another example of the negotiating ineptitude of the management.
RAN Price at posting:
4.2¢ Sentiment: None Disclosure: Held
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