"Jeez you really have no idea what you are talking about do you. SAS market cap is no where near $90-100million. That number is simply representative of the amount of shares that are currently trading on the asx, and if you had any idea of how the ASX works you would know this. If you had some idea about SAS you would know that management currently own over 55% of shares with a majority of them being in escrow, which means they arn't included in the quoted market cap! Now if you did any research of your own before posting this unsubstantiated crap you would realise that SAS’s actual market cap is closer to $250million. That would mean that a 15% investment would be worth $40million. With management owning over 55% of stock, this equates to nearly $140million worth. As a result, a $40million raise would still mean that management still own $100million worth of shares."
You came up with a misconception that I will try to correct. The current market cap is 90-100 million dollars based on current shares on issue. That market cap is not influenced by how many shares on issue. That market cap represents NOT THE AMOUNT OF SHARES but how much the market is willing to value the company. If, hypothetically speaking, management dump all of their escrowed shares tommorow then theoretically the market cap will remain at 90-100 million unless somehow the market decides that SAS is worth more because management decide to dump shares. The only thing that would change, in theory, is the share price in a phenomenon called dilution. The SP would go down while the market cap remains the same. It is impossible for 55 percent of the stock owned by management, which consists of stocks not yet traded, to be dumped into the market while at the same time maintain its SP. By logic that would entail that the market cap of SAS would rise by 40 million by just management dumping stocks. That is absolutely illogical and I am absolutely baffled as to how anyone could possibly conceive that idea. Why do you think management went into voluntary escrow in the first place if they can just dump their shares in the market? You really need to question your own intellect here...because the idea you are proposing is absolutely perverse, a travesty of logic. That is not up for debate here...
You said,
"As they have agreed to an escrow, they cannot access these shares anyway….unless of course they need to facilitate such a partnership! It would be in the best interest of management to sell their shares to allow this as they know once they have the funding the share price will be much further away from what it is now. This would not only make them a lot fo money based on the shares they already have, but think about all the performance options etc they will receive. Management didn’t sell anything when the share price was above 20c, and it is clear they believe in the success of the company."
Selling shares at magnitude of half the market cap would devastate the SP to the point of no return. What makes you think that management went the route of voluntary escrow in the first place?
Anyway if the report is true and management is going to sell then all I can say to holder is...enjoy. My words are just warning from a nobody, heed to it or not, it is your own prerogative. I am just laughing at the sidelines.
