Medicago Inc MDCGF

still relevant

[Jentai]

I wrote this three weeks ago but I forgot to post it. Most of it is still relevant


For years, I have been complaining that insiders did notown sufficient numbers of MDG shares (especially Sheldon).  My premice is simple. If they had alarge number of shares, they would work harder for our company and seriouslystart looking after values of the shares for  shareholders.
 
I must admit that the situation will improve with theProposed Amended and Restated Stock Option Plan (schedule C of your Notice ofannual and special meeting of shareholders).
 
The other day, I decided to read from the first page tothe last page one of the  six prospectusI received from Medicago in the mail.
 
Let’s me tell you that in over 35 years of investing,this is one  the most blatant andself-serving documents by MANAGEMENT I have ever read.
 
 
The good news is we haveenough cash on hand to last us until the end of June 2012.
 
Now for the bad news.
 
Over the last few years, the stock has been diluted  by almost 50% (more than 50% if youtake into consideration warrants and options).
 
The stock has been diluted  like crazy so we have to increase the numbers of optionspercentage wise (around 8%)  towhat it was in the first place, considering management is responsible for thatdilution in the first place. Very ironic I must say. So expect a new sixmillions shares in options.
 
In the past, insiders (all together) were allowed to owna maximum of 5% of the total shares issued by the company…now it  will be 10%.
 
For insiders only, whose options… have expired or willexpire soon. Do not worry, they will be reissued to you under new conditions
 
Not much cash to buy them, do not worry we will be introducingthe cashless exercise (page 10 schedule C – read this part very very, verycarefully and try to understand the implications)
 
As stupid as it may sound, I will vote for this crazy,irresponsible and totaly insane scheme for one very good reason. I want  Sheldon and his cohorts to own asubstantial number of shares of MDG (10%) of the company so they can startbehaving like responsible shareholders and start looking seriously after ourinterests which will also  betheirs.
 
 
I expect the stock to remain in the low
.50 range untilthe end of the month. I expect also that under the new proposed plan, newoptions will be granted and  soonto be expired options converted tonew options for the sole benefit of management.
 
In spite of all this nonsense, I still have a target ofbetween $1.00 and $1.25 when the new plant will start production this Fall (andresults of phase 3 are expected in June).
 
 
Benefits for the Board will be increased by 25% in2011…Peanuts compared to the new options plan dreamed up by Management forthemselves..
 

[Indicator]

... in my brief read of the AGM brochure, I did notice one lone optimistic looking line under "Objectives" in "Components of Compensation" that said the "Long-term incentive opportunity" is to "Motivate to increase the share price"However, under the LONG TERM INCENTIVE PROGRAM the goal of which is to create incentive for directors and employees to increase

[beenthere]

Ricky, would you care to add anything to what Jentai has said? Do you agree? Disagree?

[beenthere]

Ricky, care to add to anything that Indicator has said? Do you agree? Disagree?

[rickydee]

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