Exit strategy
Is Mr. Leung preparing his exit strategy?
Mr. Leung recently announced the acquisition of Northstar. The terms and conditions have not been announced but it may involve Mr.Leung engineering this deal to include a payout of his $2.8 million in exchange for the 28 million shares he will receive when he converts his loan.
I will not be surprised to see this occur, in fact I believe there is a deal of this type being negotiated. The CEO of Northstar is a highly qualified professional. I doubt he would allow himself to become an underling to Mr.Leung.
Under these circumstances Mr.Leung's exit would be akin to the captain taking the only lifeboat on board and rescuing himself while the crew is left onboard. He would be leaving Empower having recovered all of his money while the investors are left holding what is essentially worthless paper at this point in time. Mr.Leung would also still own his 12 million shares. That would be a pretty sweet deal for Mr.Leung.
It seems clear to me Mr.Leung is not spending the latest $500,000 he received for the purposes he stated in his June 28th announcement. The company is in survival mode and needs the money for executive/director salaries, performance bonuses and lawyers fees to complete the acquisition. There is no money available to complete the latest contracts.
Empower will not be moving forward in any way whatsoever until the Northstar acquisition is completed sometime next year.
At that point I believe we will most likely see an announcement after the Northstar acquisition has been completed declaring Mr.Leung has stepped down and the CEO of Northstar has taken over.
I am not opposed to Mr.Leung's departure but I would be opposed to terms of this type. I think we all want our money back. Investors are the ones who have flooded this company with money for 12 years contributing 90% of the money burnt. Why should investors be the ones left holding the bag while Mr.Leung gets all his money back and walks away having been paid a very handsome salary for years?
Reality check: Empower is dead as we know it. Mr.Leung realises this and knows he must step down for the company to move forward and give investors a chance to recover their money. The company has no meaningful revenue and no ability to complete projects.The last financing clearly shows there is very little ability to raise funds.
On another note take a look at Pixon's new website. They are clearly moving ahead rapidly with a large staff of highly qualified professionals. These are smart, professional people. Imagine where this company would be today if they had had $30 million at their disposal. I am certain they are very,very happy Mr.Leung was unable to raise the 2 million required to buy their company 2 years ago.
https://www.pixonimaging.com
Pandora, I am sorry you felt the way you did about the delivery of my last post. No offence was intended.