Why shareholders were cut out of the dealWith over 93M shares o/s already I suspect Sirit didn’t want the dilution a stock exchange would bring if Samsys shareholders were to be included. I imagine that would have been their only option as they can’t afford to pay out Samsys shareholders either – although at .025/share it would only cost them $1.3M now. Still why pay even that if you don’t have to? Let the market clear out the remaining shareholders who can sell to shorts covering. I mean really, who else was buying during the last days of trading?
Seems clear now that Tom came on board at the beginning of this year to wind down the company despite his pronouncements suggesting the contrary. He was aware of the liquidity issues and debt structure from the day he arrived. As he told the Canadian Press a few weeks ago: "This is a challenge and an opportunity I've faced since the first day of coming here and we thought it was appropriate at this stage in the process to form this special committee."
This was the best he could do? OK, maybe he thought otherwise at the beginning but something changed his mind. Still, absolutely no defense, or even an attempt at one, of shareholder value