Precisely what they stated they would not do is what they are now doing. It was distinctly stated that YA lifted the requirement for a r/s. After 3+ years without shareholder's meetings, and nearly zero news, we absolutely deserve an explanation.
However, I am going to attempt one meager stab at controlled reasoning. I just sent the following in reply to a fellow iHubber who requested my input:
Unfortunately, I am not the expert as related to corporate finance. I can only state what seems apparent to me...that if YA were to adversely effect the common shareholder after nearly a 4 year lapse of Shareholder's meetings and equal lapse of news and updates, it would seem a relative certainty that a legal suit would be forthcoming. Not so certain I would want to post these thoughts on the board since this becomes a highly sensitive time.
IMO either the intent of the r/s is to contract the stock and then subsequently dilute the company again via the issuance of additional shares (hence leaving the A/S in tact) in order to continue funding the company (and a good reason we have not witnessed any buying by insiders to date), or a sale or reverse merger is in the works.
I have seen r/s's executed for a variety of reasons, one of which was to pursue a reverse merger. If the r/s is not intended for a reverse merger, and not to reduce the O/S with intent to begin diluting again, I question why they would wish to keep the A/S at 5B.
One item appears certain (if my thoughts are accurate..because I am NOT skilled in corporate finance)..that YA wants 'control' of neom. IMO, the only reason they would want control, would be to ensure that whatever event is being planned..can be approved. Whether this means further dilution or a sale of the company is up in the air.
But let us now take this one step further...what if the company is anticipating an imminent resolution to the EU patent dispute and a sizable revenue stream to begin driving the pps...and the whale is now at the table. This could be a reason for the r/s as it would help drive the pps to a price that will allow the stock to become listed (plz keep reading and hear me out before judging; I am well aware that at a 1:100 r/s we cannot get listed)...potentially via a move to a different exchange (although I continue to feel an r/s is premature if revenue is forthcoming).
Furthermore (and I need someone's help in answering this question 'definitively' without guesswork), is it possible for a company or group of companies to acquire Neom and, regardless of whether the acquiring entity(ies) are themselves publicly traded, could the whale keep Neom as its own publicly traded firm (under the symbol NEOM) after it has been acquired. In other words, what do you feel might occur to the pps if MSFT stepped in and acquired the company? The pps would fly away. However, since the shares are being consolidated the pps should fly higher..AND..once the pps achieves a specified price the company is free to issue shares again to raise capital.
Of course, if a new entity is being born via a consortium, and there is no intent to take Neom private, then IMO this may be a good qualified reason for the r/s (since the acquiring entity, being a "private" entity, would want to be able to raise capital). With the acquisition the pps could fly and plenty of new shares could be issued at the appropriate time in order to raise needed capital.
I truly do not know what to expect, and all could very well be lost...however, I have come too far to turn back now...at a time when so much appears to be happening around us and excitement is growing. But I also may be terribly mistaken. The filing certainly does not seem worded in our best interests. I feel I need to wait a day for word from Iain. If we do not receive a detailed explanation I feel that each and every iHubber should email Iain directly demanding a CC and a complete and detailed explanation within 5 business days.
All of the above...JMO. (Apologies for not being able to stay on the board tonight. Will try to check in tomorrow afternoon).
Best,
Be Confident
AI
