firecracker: Phil Rauch our only hope.
Phil Rauch has the formal financial background. He can see past control and revenues.
Control is one thing; ownership is another.
Control allows you to pull the strings and report the numbers on the NMKT financials (hmmmm ... revenues ... hmmmm ... PV loves revenues.) Control could be retained via preferred shares by stating that preferred shares have superior voting rights over those of the common shares.
Ownership is where you make the money, as shareholders. Earnings per share (EPS). Selling your shares of stock.
While PV gets off on control, I can't believe the INVESTORS in NewMarket China have no interest in ownership. Right now, at 2M shares for NewMarket China investors, trading at $0.11, that's worth a total of $220,000 to existing NMKT-China -- split four or five ways. While, at the same time, the stock is worth $2,530,000 to the pre-deal IICP investors.
It just does not make ANY sense to allow those 23M shares of IICP to stand after the merger.
With control, the preferred shares could be converted to a majority of the common. That's about the only way the NMKT-China investors are going to make any money out of this. Yet, if the 23M shares are left in tact, the PERCENTAGE ownership will be around 50% instead of the 90% it SHOULD be. Remembering that PPS = (Market Cap) / (outstanding shares), those 23M shares limit severly the upside potential of the PPS.
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You post: "I'm trying to believe that Phil isn't stupid enough to hand most of OUR company over to a bunch of strangers just because they let us buy their stock listing for $250,000."
Well, I believe he would be. And it scares the heck out of me.
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PS: You post: "Right now you and I own 100% of New Market China because it is owned by NMKT and we own NMKT."
IMO, that's not entirely correct. New Market China is only owned 51% by NewMarket Technology (NMKT). Given that there are only 1,000 shares outstanding of NewMarket-China stock, that would mean that NMKT owns 510 shares of NMKT-China.
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PPS: After the deal, the only two officers of the new NMKT-China will be Phil Verges and Phil Rauch. I would hope that changes IMMEDIATELY so that the officers of the existing NewMarket China would take over/retain the management positions. The last thing I need is to own ANOTHER company "managed" by Phil Verges. The later would be my ideal scenario: PV as Chairman of the Board going around smoozing and making deals. And corporate management types using their skills to build a real corporate structure, complete with various departments and department managers, etc. I don't think either Wall Street or AMEX particulary likes the "Company of One" management style. But then again, that may be just "an administrative issue".
