The following is just my subjective opinion:
It's all one big happy family. This is a start up company under the control and leadership of the founders. As the company grows and matures, this is likely to change. Change may not be demonstrable for years. This business model is the norm for the stage of maturity of the company. Therefore, high risk and high potential reward.
It's, in my opinion comes from the win, win school of thought. Win for insiders, equals win for the BOD, equals win for shareholders. The converse for lose.
I am a big believer in transparency, corporate governance, board controls, monitoring, etc. But, a lot just comes down to the questions: Do you trust them to do the right things by shareholders? Do you trust them to be fair? Can they be objective?
Personally, I would not be invested in NNVC if I could not answer yes to the aforementioned questions. I ask these questions often. If the time comes when I can not answer yes, I will reevaluate my investment situation.
I know the board and officers looked at the possibility of buying the facilities outright. I think Diwan will go along with whatever the board decides. He has recused himself because of conflicts of interest on this matter.
The main reason for the reevaluation was due to criticism concerning insider deals and conflicts of interest.
But, I believe the board has come to their original conclusion. It is in the best interest of shareholders to lease, rather than buy the facilities. The main reasons are capital preservation, and the opportunity costs of replacing funds that would be necessary in purchasing the facilities.
So, the debates will continue. But, it all comes down to trust.
I trust the BOD is operating with the best interests of shareholders in mind.
Even critics and doubters must understand that eliminating the source of their criticisms will just foster new reasons to be critical. Buying the facilities, reallocating capital, will lead to the need for additional funds. Debt or equity financing, at present, will surely just feed more red meat for anyone who is predisposed to be critical. So, NNVC is in a no win situation for their critics. Leaves them the only reasonable option. Just, do the right thing. The right thing seems to be lease and not buy, for the foreseeable future.
Everyone, will just have to decide for themselves.
Do you trust?
My answer, for myself, for present: Yes, I do.
