Management holds 50m PRs issued 29 Sept 2017, escrowed for 2...

Management holds 50m PRs issued 29 Sept 2017, escrowed for 2 years and will expire in 5 years. Vesting condition $25m revenue at 13% gross margin for one half, and $60m revenue for the other half. Full details in 9 Aug 2017 announcement.

With the Broadway acquisition, $60m revenue with 13% margin is practically guaranteed for FY20. Perfect timing for those PRs to come out of escrow and get vested. Without these acquisitions, these PRs (at least half of them) would have been at risk of lapsing.

Once these PRs are converted, in my estimate, the management, board, insiders and related parties will hold around 150m shares. From this point onward, their target has to be to increase the value of these shares.

Up until now, it looked like they were diluting their shares recklessly. But they were not - they absolutely had to increase the revenue quickly by acquisition. Most of the shares issued so far have been to vendors, company insiders and most likely their friends. So now only logical thing to do for them is to increase the value of these 150m shares, which happens to be good for other shareholders as well.

Only question mark remaining is the general meeting next month. Things may get jinxed for all shareholders if the resolutions do not pass. I would not be surprised if SP is held bellow (or only slightly above) 16c till the general meeting is concluded. That 16c being related to resolution 3 in the notice.