Alajovic......
...."If DC is correct and the SP tanks to 20c after Directors shares are issued, then the Directors will have a liability of $750,000 and and asset worth around $300,000. Ontop of that, 50% in escrow for the first 12 months.
Now why would a person do that to themselves if the SP was not going up"....
The Directors are not that stupid......
From May 3 announcement.....
ii) Nature of the loan
The principal amount outstanding under loans made by the Company will be interest free.
The loans will be of a limited recourse nature such that the Company will accept in full
satisfaction of repayment of a loan the amount of the market value of the Plan Shares at the
time the loan is due to be repaid (less any transaction costs relating to the disposal of the
shares) in the event that the market value of the Plan Shares is less than the amount of the
loan outstanding. The loan is to be repaid within such period as is specified by the Board
Committee at the time of making the invitation
The share issue/loan is risk free
Cheers
drifiting lower, page-15
-
- There are more pages in this discussion • 13 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)