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RD What is your current view of the pre-IPO shares vs dilution of TRW?
Cfr 10-K page 95;
when combined with the ownership of the Company provides a majority voting block (68.6%) necessary to meet minimum
listing requirements in Hong Kong for adequate “continuation of management/operations
And the uncertainty aggravates me.
But we'll get more clarity in the Q1 report.
Professional services
Sorry, seems like I'm not only loosing my mind, but also my memory...
How confident are you that these are the ECAB-shares from July?
And how can we explain the rest of the increase since July? (i.e mostly this year) You have been speculating that some of them can be the convertion of a-shares, but what are the odds for that? (it seems to me it would be suicide to convert at the current PPS, unless he has a deal with Garret and a few other large shareholders to protect him)
The shares have been used for settlement of other payables with a share price of 0.55 USD/share
I agree with you, snow. I don't think Solomon plans on transferring the debt to SIAF and the assets to TRW.
However, it does seem clear that he will transfer (as a loan or similar) as much cash as he can from SIAF to TRW, sacrificing SIAFs shareholders by dilution, and in the end he'll reward himself with shares to compensate. Well, according to the admission document to Merkur the scammy compensation scheme isn't in place, it is a way more sensible scheme up to and through 2017.
The roundness of the non-round number suggests that it is something special ("special"), but it would be very dangerous for Solomon to convert the a-shares at this stage...
Probably not good news though, we can only hope that it's not the current PPS that has been used as an estimate...
I think its time to prepare a lawsuit..
I don't think Solomon knows how much he's playing with the fire...
I doubt he has an fire-extinguisher ready in the Q1-report - best case we get more BS, worst case he "forgets" to address it at all.
This increase better be the ECAB-deal (although that leaves us with the question with what the other increases this year is). It could be the toxic note from Garret. If it is compensation shares or converting from A-shares then Solomon might need to be acqainted with SEC/Merkur (this dilutes the TRW-dividend quite a lot)
All good ideas jyyoo, and any other CEO would have done that already, but we all know that any cash from assets sold will go straight to TRW...
The only sensitive thing for Solomon to do is to stop the dilition and defend the PPS, i.e grab whatever cash he can and RETAIN it in SIAF and start a cash dividend yesterday. Can't be much of gentlemen in TRW if they demand/expect (or even accept) that Solomon sacrifices retail shareholders in SIAF for "nothing".
Stop capex in TRW and make TRW pay 36.6% of its profits in 2018 to SIAF so that SIAF can use those for emergency cash dividends. That would end dilution, support the PPS, and also calm shareholders so that Solomon reduce the risk of being sued (is he so protected in China that there is no chance of him loosing SIAF and/or SIAF being destroyed?)
Get control over the mother-company before expanding the daughter.
Im actually considering taking a heavy loss on this shithole of a company
jyyoo We all appreciate your efforts to keep us sane(ish), but Solomon is destroying your credibility as well; does SIAF have more plans for conventional loans (for itself) or was the "good" news about the conventional loan you told us about before the 10-K the 20% dilition at 12% of book by ECAB (i.e giving away shares for the interest) and the toxic note from Garret?
The first delay for the $100M loan in the beginning of the year was due to the collateral. They had to revalue the collateral and this was resolved by pledging resources from Tri-way partners. The second delay came because apparently one of the bankers changed companies and the new banker that replaced him had to review all documents over again and even asked for new ones
I assume this will be paid out some time in Q4
What do you want KS?
You are making this up
because I have a lot more shares than in the past
That's why we need to step up and tell him that he has a fiduciary duty and that we've had enough. The second best thing, that also should be done, is to strip him of any further compensation shares - that's the only way he would be able to feel our pain.
I wonder why he agreed to the toxic note from Garret. He must have thought that the TRW-loan was imminent, why not give SIAF a short-term loan like he's done in the past instead of diluting us and putting our fate into Garrets hands? (didn't Solomon learn anything from ECAB, or doesn't he care)
It doesn't really matter whether they will distribute 18.3% to 25M shares or 34M shares, does it?
In general though, they will distribute 18.3% (or 12.x%) to however many shares are outstanding
Then, issue debt notes from TRW to SIAF shareholders directly
As for the collateral shares, the average is something like $1.75 and they have no intention of going any lower
Didn't you get this?
I think it was designed this way
Whats odd is the company made material statements last year we would get the TRW dividend
it's not entirely stupid to finance the future progress of Triway
Let's review this post after the Q1-report...
he said in december that the worst should be behind us
They already set the agenda, right?
Ecab will probably get another, and a better deal to get more shares
They're very aware. Unfortunately they can't do anything to speed up the loan to put an end to dilution
We'll find out about the details of the cash dividend in two weeks
Either they get it by now or they don't
I don't think he'll listen lad
The $30M master license is for 300 modules it appears
I read some of it but my head starts to spin after 20 minutes
breach of fiduciary duty, and negligence
Have you bothered to read through the documents and correspondance? (i.e any snacks for us there?)
Also; does this mean anything for us? (if I recall correct then this might have blocked the TRW-dividend and/or AGM or whatnot, but the TRW-dividend is postponed till (at least) Q3 anyways)
jyyoo; Page 103 in the 10-K
Lee Yip Kun Solomon. On December 29, 2016, we renewed the three-year employment agreement effective and continuing as of January 1, 2019 with Lee Yip
Kun Solomon, our Chief Executive Officer and President (the “Lee Agreement”). Pursuant to the Lee Agreement, Mr. Lee is entitled to an annual base salary
of $336,000 and to receive a certain number of our common stock per year calculated in accordance with a formula of (Number of shares (X) = $336,000 / $ /
share ($Y) at time of settlement). Such shares have not been issued to Mr. Lee. Mr. Lee shall also be eligible for discretionary performance bonus payments;
no such bonus has been paid. The Lee Agreement provides for Mr. Lee to be eligible to participate in any incentive compensation established by the
Company; no such plan has been established. The Lee Agreement also includes confidentiality obligations to which Mr. Lee must adhere.
I don't - hence the "I doubt it" part
He might not understand anything but hard talk - I don't think ECAB were able to get a deal with him in July by asking nicely... Might be time for us to stop taking the abuse and begging for him to show us any affection, and step up for ourselves.
He better stop the BS by the Q1-report.
Well, if any native english-speakers want to draft a letter then many of us would probably put our names on it - although I doubt it would do any good (but something has to be done if he is unable to stop the madness himself)
That would make sense, but why can't they issue them all together and get done with it instead of scaring us with an increased OS all the time?
Whatever it is, let's hope these shares don't hit the market... Without knowing I would guess that ECAB wants to hold on to these shares. They have basically gotten them for free, so it is a very nice (and free) lottery ticket.
Also, the pressure have seem to been of the PPS for a while now. Let's hope it is a permanent change this time
The time to buy is when there's blood in the streets
Now there has been blood in the streets for quite a while, but the thing that has changed is that it seems that quite a few of the loyal longs soon has to throw in the towel - which is a new kind of blood in the streets
I would rather see Solomons blood in the streets than retail shareholders blood.
You believe it's part of the toxic note from Garret?
It is better to dilute at 12% of book than 2%, but until we have any news about that we should just assume the worst - with Solomon the worst seems to turn out to be optimistic.
Even if it turned out to be the case, then I do not feel it's ok to dilute us 1.5% at 12% of book when we didn't need to. Stop capex for crying out load. However, if this were to be the case, i.e that Garret accepted a repayment of 57.5% in cash and the rest @ 3usd, then that would be very respectful of him (he still got a sweet deal though, with the 320k shares in SIAF as interest)
Since we're speculating already; What's Solomon's plan for himself and TRW-shares? Appearantly he got to choose between 320k shares of SIAF and 87k shares in TRW. Which CEO would choose SIAF-shares? Those 320k SIAF-shares is entitled to 224k TRW-shares even after the heavy dilution the past year (of course the 87k TRW-shares would need to be taken from SIAFs TRW-shares, but Garret still gets MORE TRW-shares now through the SIAF-shares than if SIAF had given him TRW-shares directly)
No, do you think that would help? Maybe we need to have a second look into the idea last year of putting together a letter? A temporary implosion of PPS is painful enough, but diluting at these levels is unforgivable.
We need to stop this madness.
Solomon; 567k shares @ 0.55 = 312k in added value to the company. I'll compensate myself so that I own 10%, i.e I just increased my value with 31k
Retail; 567k shares @ 0.55 = another 1.5% of the company diluted at 2% of book, hence our TRW-dividend that already is one year delayed and reduced by 15% already (!) is reduced once more. My current share is now worth LESS than it was yesterday.
We're loosing value by the day. If Solomon doesn't realize that, then someone has to force it in his face.