RE:RE:RE:RE:RE:RE:RE:RE:Darren Bondar; Something to ponder. Jess, I'll give you this, you at least take the time to respond, and such is appreciated. That said, you never seem to answer any my questions. So once and for all, lets put this to rest then shall we? And dont just conveniantly say you're not interested in discussing it as you so have with the last back and forths we've had.
What (obviously in your opinion) did we NEED or even use for that matter, that we had to pay 27 million shares @ 0.10 to buy WATCH IT! for? 2.7 million in valuation, and I evened it out @ 27m shares, its more like 2.76+ million. Thats base purchase price, we then paid 500k to pay off Darren's 'Bondar" loan that he gave WATCH IT! So 3.26 million dollar buyout. For a company that was draining almost 2 million a quarter in operating costs, X roughly 11.5 quarters = 23 million give or take in operating costs. So overall roughly we're looking at $ 26.26 million, for three years only to roll it up and bankrupt it. (admittably I did not do the DD in pulling the average on quarterly losses, this is only from memory). But that equates to roughly 26.26 million in costs. So I ask again, what did we extract from WATCH IT! that was worth 26.26 million dollars? Cause from an ROI standpoint, the company royally fkt us to save Darren from losing 600k and whatever the value of his shares we're that we're saved and converted into the 14 million or so Inner Spirit shares he owns.
I'm all for compensating directors on perfomance, but this is agregious. Especially when you look at Hadly Ford from Ianthus who just resigned because he had a private loan with the same guy who he signed the debenture financing for Ianthus with. A conflict of interest.
And follow the trail here, but the reason I bought in in the first place, was exactly what I had mentioned in the first post. I did brief DD on the company to begin with, and liked what I saw. Did I look at the 130 odd page Long Prospectus of the intitial IPO offering and connect all the breadcrumbs the CEO left? Admittably I did not. I was in my second year of investing and wet behind the ears. I didnt know any better and didnt think such things like (Wayland, Cantrust, Ianthus, Acsent, Hexo, CCAN ect) we're possible.
After several CEO's that I believed in royally burnt me for tens of thousands of dollars, and outright lied in NR's and interviews (opening my eyes to how easy and lawless Canadian securities can be) as I mentioned, I am now doing a full analysis on the remaining companies in my portfolio to see what the management team is REALLY like.
Hence why I posed the initial question in the FB when we we're discussing CEO compensation, and why I said "I'm not saying this is the case here, but this is why I am very skiddish now on who to trust when a plethora of illegal activity has gone on in the sector..."
That is NOT an accusation. Its barely even an implication. Its giving creedence as to why I am as skeptical as I am today. YOU took it the wrong way, deleted my comments, threatened to give me the boot, and said that I have been negative in the group. Which stems from my previous comments about how I was displeased they gave the compensation options to management a month early while we were at 52 week lows. Setting the bar for the sideways rangebound trading that held us in the 0.085 - 0.11 range for months let alone the entierty of 2020 so far.
Listen man, I'm invested here the same as you are. Only difference is I dont believe the silver tounged charismatic CEO's of unproven penny stocks anymore. I dont like unnessesary dilution, and I dont like mismanagement of MY capital. At the end of the day, this is not Darren Bondar. This is Inner Spirit Holdings. A publicly traded company that we all own a piece of. And if you cant see that there was a major conflict of interest buried in a sedar document 98% of retail investors wont read, then thats your perogative. Be honest for a minute. Did you read that whole prospectus before investing here?
So lastly. I ask again. What did we take from WATCH IT! in your opinion, that was worth the roughly 26.26 million that it costs shareholders? If you cant come to some sort of validation on your own, maybe its time you change your view on who the CEO's best interest lay with, and maybe you see that the 280k we pay him annually (though on the surface looks average) is perhaps very favourable for him when you consider how he bailed himself out in the past at my and your expense. Not considering what he takes from the company in leases.
And Cujo, I appreciate your response and comments very much throughout our time here. And certainly agree with you 90% of the time, we seem to have alot of the same viewpoints on both Canadian politics as we do with our investment dollars. That said, myself and my family have several corporations between us, and have not charged ourselves (or the company) rent fees. Because at the end of the day, we're privately owned, and doing so would only cause more taxes for us personally and corporately. It doesnt make sense if it dont make dollars. Its very different if your a pubco and taking money from investors, as Darren does not own ISH, so I do understand him paying himself. Although most times this is done in the public realm its at a major discount to the company. Or not done at all to avoid any conflicts of interest. Certainly by the bigger companies. In the penny stock world, its a little more shady, and best to question.
Will reoport back this weekend when I have time to do a dive into the lease costs vs fair market. And Jess, look forward to your reply.