RE:RE:RE:RE:New Presentationtradersam99 wrote: Djwburr wrote: "$1.0M being purchased by Management and Board" Does this mean share purchases by management?
Yes. . . . .
Uh uh... I guess we really don't know how voluntary the share purchase was. I doubt it was voluntary. Also, I expect employee options to be cancelled and repriced.
Let's be clear: the next kick at the can for capital will probably instead be sale to go private. There is a material risk that the company would have to be sold in entirety to a larger entity. Someone like Broadcom would be interested for the right price, even if only for the IP. In this type of scenario, our new CEO would do well with his $5MM shares and presumably a business continuity package, but shareholders could lose big time.
SEV should *NOT* have gone for the high-interest loan unless they were very confident that it was all the cash they required. And I am still not confident that $6MM is enough. It still carries for maybe 2 quarters. Given the economic climate, we probably meeded $10 - $15MM for comfort. I suspect the reason it was so low was that it would not have been fully subscribed.