I have posted a few similar things recently.
In regards to your post, I do not have a problem with management taking big salaries, it has been a long road here and there are numerous responsibilities, and after much research I can see that the CEO is trying to turn this boat which was a mess around.
I do think the Preferred shares are a problem however as they (as you can see) will cap runs in the stock and get a lot of shares out there. Now if you read carefully they are converted not into a set number of shares but a dollar value of shares, meaning as the price rises there is less dilution. So it makes no sense for them to register chunks now and let them get out there. They can make the same money later and insure all investment shares of their own for the long term are worth more by just holding back til the next few quarters come in strong.
In his response on the facebook page to me I think he is trying to say most of that should stay there but as an investor you just do not want to have 6 million shares be able to come out of nowhere 10 -15 times.
The other issue is we have to find out what they make from the Franchisees. Like what the franchise fee is, what the royalty or % of ticket sales is. Because approx 1/3? of the ticket sales are not corp events. This means it will not flow to the top line dollar for dollar as revenue. People are expecting 16-18 million in sales which might happen but if it does it might not all flow to the SAKL top line.
I tried to look for the agreements but the one link I found was pulled or dead.
I like everything about this company except for the share thing and not knowing the franchise deal.
I also feel they should pick up the Electric Run to add to their properties. They could be like a traveling Disneyworld to people all over the world. Its a great idea and fits with the times.
This company use to have like 25 billion shares authorized, they cleaned that up to 990 million but even that is too high and the capital structure should be cleaned up ASAP to give this the legs it needs.
The insiders do not come off as scammers to me, just cleaning up and learning along the way.
And I think the move to take over the major franchisee was a good one. They might need to handle more events corporately as some of the franchisees have messed up.
AI
