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"the idea of daily flipping by thousands of people will vanish". Do you have some math to back up your assertion of thousands of people flipping daily? Like 5 million divided by 2500 equals 2000 for example. While 2 thousand actually qualifies as thousands your assertion seems a little pie-in-the-sky. The PPS will actually cause people to scrutinize this stock and it's actual value based on solid fundamentals, not dreams. Unless there is production and revenue no split will save this. It'll sink. And that doesn't account for the usual value loss of an RS.
Yes I know. it was a joke. But he is going to vote himself the BOD, if I understand the proxy. Still a formal requirement, even if your vote doesn't matter.
I went over the idea of picking up more shares but it is such a crap shoot. If you pick them up at the lowest possible SP, then it splits, and historically the SP drops again, do you have a profit? Only if he does not either take the company private or accept a buy-out. If he does, then he makes the decision as to what share price will be accepted for a shareholder buy-out.I don't see an upside, because he has depressed the share price. The split will depress the share price. If the share price was important then he would have dealt with this issue in a different way.
Suppose he has a buy-in. I am no expert, but the terms of a buy-in are usually a means of protecting the investment. A buy-in could be structured a number of ways, but share price would still be an issue but total shares would really be the issue, hence the RS. The buy-in would get controlling shares, KT has controlling shares, and we get some of what is left after an RS.
In this case say the XYZ & Company buys us out and it is a share exchange. They benefit from a reduced share price, and pay more for IP, Kt has a position, x percent of the company etc., or whatever Kt agrees to.
I wish I knew more.
Our share price was .46. I bet we get to under.12. Because the risk with a split and the actions surrounding the SP and such an extreme RS ratio just spell doom.
I think the simplest way to buy-out/buy-in though is taking it private first. Milliken is private already.
The business plan would, could effect SP, and thus would have to be disclosed to the public at the same time, or prior to the meeting.
He has to get the split approved, right? And vote himself king.
Well I think you have some options, which are to hope for the best, but KT has all the chips and legally he needs to give us nothing. He has majority vote. From what I have seen, if I didn't know better, I would think he manipulated the stock price,that there has been insider trading. Many SH's are upset by the perception of what has happened. I think there are rules about such things.Good luck.
Guess who gets to decide the buyout price? Majority shareholder. After he has run down the value and lowered the number of shares.
I believe I was the first to say I thought he was taking the company private, but probably not the only one to think so. I wish I had a pool going on that. That and how low the share price will be the day of the meeting and the day of the announced split.
"can you think of a ceo of any major company just sitting there mute, doing NOTHING, while his stock falls 60% in days?"
Coincidence takes planning.
Nothing but.
Blaming the shareholders is like blaming the victim of a mugging for fighting back.
Thanks. Any fan/blower noise?
Thanks for the photos. Silkworms grow best in temps from 68-82 degrees. Did you hear any equipment at all? Like an air exchange,fans.The lack of lights, cameras, security-besides an old guy claiming to be security. No personnel on a weekday at 5:30, which is not late. Weird.
Will you be there tomorrow am? Would like to know if there is any traffic into the facility. The bags looked like old garbage-did they look recent? Is the sign a banner on a wood frame? Are the locks on the gates rusty? Thanks.
Did you read the proxy? It's 1:20 to 1:40.
Thank you for posting this. Looks really bad.
Thank you-so true, OTC stocks can be dicey.
Not a tech stock.
I just invested in a stock that has directors from 4 major, well known, highly successful, international companies. It is an OTC.
I understand that he can dilute to an investor and I never thought it would be to the general public. My feeling is he has an offer already for a buy-out or an investor.
Thanks for the info.
We're going to disagree. It is possible he will dilute. But legally, just because he says this is not a step to privatize, does not legally bind him to any action. By his votes he will be the BOD and can change his mind at will. Specifically states he will have the majority and will do what he wants, even if the rest disagree. Bottom line. And the bottom line is really all that matters.
You may think that, but nothing in the proxy regarding future intentions is legally binding. And he says so. He cuts it both ways.
Not his only goal. I did not say he wants to do anything to SH's. He just does not care about them. A necessary evil to finance his company.
"He can taste it". Yes. He can taste just how much more money he would get from a private company, or one where he makes all the financial decisions. Tasty!! Can you feel the after-taste coming on?
Be at war with whom? The SH's lobbing insults from afar? SCARY!! And just wait till the RS when SH"S will have even less of a vote.
I beg to differ after reading many of comments about the potential RS. None of the language in the proxy is binding except the RS vote and the BOD. He is not obligated to up-list, he can privatize, because after the split, he will remain the majority vote. He wouldn't have it any other way. The only question left, IMO, is the degree of disregard that he has for the SH's.Or whether I should use a different adjective.
Yes there seems to be so much people want to overlook. Yet it is perfectly clear that this move at this time makes no sense. The listing requirements are not going to allow KT to reverse split then list after x months. It will be years. He either takes it private after the RS or dilutes. The big give-away for me is a lack of BOD. No one else with relevant experience and connections is being asked to the party.Every serious public company with credibility, even early in the process, has people with experience guiding the helm. If he does take it private or dilutes, he is a real nasty...
Thanks for taking the time to spell it out point by point.
The key is non-binding. He could have specified binding. Chose not to. He is not beholden to up-list.
"The main difference of non-binding voting from the conventional binding voting mechanism is that the vote tally does not, at least directly, determine the outcome. Instead, the management has the discretion to decide whether or not to implement the proposal, even if the majority of shareholders support it." Oh yes, he is the majority shareholder.
https://corpgov.law.harvard.edu/2010/12/10/non-binding-voting-for-shareholder-proposals/
A reverse split and it's effect on the stock pps as it is now could also be a form of protection in a move to uplist. How does that work? It only needs to be a dollar.
Possibly at much higher prices per share could that spark some kind of audit?
How does PPS start an audit? No, it doesn't.
A more reasonable share price to current assets would then seem safer in an attempt to uplist once they announce commercial quantities production. This sequence of events could also be a way of avoiding legal scrutiny that would interfere with standing and Kraigs growth.
What legal scrutiny are you talking about? What you wrote doesn't even make sense.
This screams of a CEO that still doesn’t really understand the communication side of running a business.
It says I don't care what you think. You are assuming his goals to be what?
He can't be an idiot and then a genius. It looks like, by his actions, that the only thing left is the RS.No BOD. I think he sees that it will fly and now that he sees that he does not need the ants-SH's, for the next phase-privatization- off with you. Wasn't someone saying KT wanted to sell the company? How much more profit does he get on a private deal? He could easily be releasing info to help the share price. Maybe he wants a lower share price. 40:1 at 50-70 cents is much cheaper than a dollar or 2. How much easier/cheaper will it be to buy you out sooner than later? He barely allowed for the time necessary to get the proxy out. Less people will definitely show up. He could have a financing deal unsigned that specifies who knows what. Just got to execute the split, buy out the rest and boom. All that revenue is his alone minus those pesky rules and requirements.
I am angry at KT. He did this. He owns it.
I hear you. Probably already has it all drawn up and ready to file.
Will KT be at the meeting? What will the mob do? Don't underestimate denial.
If he did finance, who and for how much? KT apparently does not like anyone looking over his shoulder. We should start a pool with bets on how quickly he enacts the RS. I got September.
Agree completely. 40:1 is no accident.
The SP is about speculation. Not sales, not production, etc...I also look to his actions, or lack of. His news, or lack of in regards to SH's. it fits his profile of control. He is going to have less control the minute this stock gets bought into by institutions. The 10:1- 40:1 is just plausible deniability IMO. It will probably be 40:1 and that will mean more control, which fits his past actions. He's just not that into us.
Where is the BOD? We could easily have had one by now. Unfortunately it makes perfect sense. What does not make sense is that given K's past actions and lack of communication, his seeming disregard for SH"s, is that he would bother with up-listing when all he has to do to get complete control, and more money, is reverse split and go private. Then sell if he wants to.That fits his profile.