Just had a look at the Reddit site for GMVD. There is understandably a fair bit of outrage over the ridiculously generous performance shares. Why performance shares are allowed to be tied to anything other than the share price is beyond me. After all, the share price is the only performance that matters.
Anyhow, I did some rough calculations:
Currently about 14.5 million shares on issue (not sure if this includes recent dilution from con note and 12 million placement).
Performance shares will dilute by 4.65 million shares if Market Cap reaches 200 million.
Assuming no further dilution (wishful thinking), 19.15 million shares on issue at 200 million Market Cap.
200 million divided by 19.15 million comes out at $10.44 per share. Convert to AUD = $14.77. Divide by 90 for consolidation = 16.4 cents Aussie.
Yes, it's pure greed from management. Unfortunately, it's very normal for ASX companies. Not sure if it's normal for NASDAQ companies. Market seems to have had time to digest it and is not happy about it.
I'm sure that more financially literate others on here can come up with more accurate figures which take into account dilution from warrants being converted, con note, placement etc.
GMV Price at posting:
3.9¢ Sentiment: None Disclosure: Held
