RE:RE:RE:Maggs...SPN's Positive EBITDA and Cash Position
"Rolling back their shares outstanding from a position of strength"
What? I'm not sure if that is a quote from the CEO or just a statement. You can clarify which if you like.
While we can only look at the business from the outside as shareholders, for all intensive purposes, the company is doing fantastic in so many different ways but every shareholder has lost their *ss no matter when they bought the stock over the years and is getting killed without fail. Including the insiders with only a few exceptions.
So in summary of the statement I just made...The majority of shareholders and insiders who hold stock are heavily underwater and you could probably make the case, they are probably not happy in general especially looking at how well the business is doing.
With that being said...Rolling back shares when your stock price is heavily underwater would be the height of absurdity and the biggest F.U. to everyone I think I have ever seen. There is no circumstance that this would be from a "Position of Strength" nor is there any circumstance that it would be the right thing to do.
I've made this case before and clearly laid it out on this board. So I don't know what makes people think a rollback is a positive event when your stock is already at rock bottom according to the financials and every other metric that you could possibly find about the company.
I honestly can't believe the CEO is even saying this without very clear clarification.
The actual statement from him about that should be..."When we get to a fair valuation, we will consider the circumstances and take the correct steps to do what is in the best interest of shareholders".
As well as they are doing...(Congratulations to Atul for a job well done) They need to change the language of these insane statements about rollbacks and go about running the business and continue outreach to shareholders.
A rollback will be useful for them at some point when they decide to go to the Nasdaq and they have a reasonable fair valuation in the market on the Venture exchange and the OTC where they currently trade. But a move like that to the Nasdaq should be tethered very closely with their rollback and financial support during the process from exterior financing or other agreements in place.
But without that, they are killing any and all credibility, and/or a desire to buy the stock in the market by even talking about something absurd like that without clarification. I honestly don't know if they have advisors helping them (CEO says they do) but if anyone is advising them with this open ended language, fire them now and find yourself better advisors. That is not how to successfully market yourself or run the procedure of an exchange move. WTF!
I've been in the tech industry on the finance side of wall street, now retired. It bothers me that this is not clarified. This is so wrong on so many levels it's really hard to understand. Shareholders should get on the phone with the CEO and ask pertinent questions about this immediately and get clarification of what they are doing!