Pre-rollback EQ value= $0.002154 and what % management owns? If the reality approaches the unsettling scenario of management and close affiliates owning over 50% of the company, or even worse not including bonus options and warrants, it begs the question: How much time and capital has new management allocated to the seemingly self-serving activity of printing shares primarily for the benefit of insiders and others, rather than focusing on initiatives that are meaningful to the market?
Let’s engage in some speculative arithmetic that may explain the actions of current management: Assuming that management and affiliates retained close to 2 million shares post-rollback out of 32 million outstanding at that time, and only a modest 20% of the newly issued shares were actually sold in exchange for genuine investment capital, while an overwhelming 80% represented debt swaps for insiders and others, it paints a concerning picture.
Facts:
1. Following the rollback, the total outstanding shares amounted to 32 million.
2. Presently, the total has ballooned to nearly 84 million.
3. Post-rollback, the company sought and obtained special permissions for almost every financing endeavor, facilitating the issuance of stock to insiders, and flexibility to issue shares to associates, consultants, and promoters. It is highly likely transactions often involved substantial debt swaps, further entrenching insiders and their affiliates in the company’s affairs.
4. Pigs get fat, hogs get slaughtered is a proverb that is often used to caution against excessive greed or overreaching, suggesting that those who become too greedy tend to suffer consequences as a result.
Assumptions
5. If Management and friends owned approximately, disclosed less than, 2 million post-rollback shares.
6. If 80% of the newly issued shares (52 million) are owned by management and friends
7. Total shares owned by management would equal 51.9% (if 2 and 3 are close to reality)
Regardless of this possiblity, The pre-rollback equivalent value of the current $3.5 cent bid price per share on the TSXV is approximately 0.002154 CDN per share. A far cry from the value of the company before the current CEO joined the company.
GLTA, VITF