,
You cannot just read the substantial holder information to get a handle on what happened with the shares - you have to go back to the prospectus and all announcements past that point.
The original 298,333,333 + 10,000,000 shares acquired as part of the sale were all escrowed until Feb 2017. When the shares came out of escrow they went into ISX(BVI). The Otis Energy prospectus states that JK held a relevant % of these shares as he did in the ISX entities being acquired by Otis Energy. This % was stated as over 20%.
From my research, except for a nominal 8,190,233 which I assume was distributed to some advisors (?) and 3,000,000 that went to Ithaki, 297,143,100 of "sale" shares stayed in ISX(BVI) until after the performance shares were awarded. It appears the shares were distributed along with the performance shares.
My assumption regarding the reason for this is - because it makes sense to me considering any investment agreements I have made over the years- that JK had offered a % of the sale price of the original company to people who had invested money and time in developing the systems, getting patents etc. Because the sale was not the straight sale that had been envisioned - it involved cash, ordinary shares and performance shares- the agreements became complicated because there would be impossible to calculate a straight % because there was no way of knowing if they would eventually get the performance shares or not.
Therefore, the 130,000,000 shares distributed on 6-09-2018 to Red5 were not entirely performance shares and accordingly not all of the shares sold were performance shares. The reason Red5 was not a substantial owner before 2-9-2018 is because the total number of shares (original + performance) were not distributed to Red5 until that point.
This does line up with what JK said to Swami.
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