No no, SK is not getting that 10 million all for himself he's not in this alone. Plus SK already have millions of shares. It's going to be up to 1.5 million per person distributed. SK might be greedy but 10 million shares all to himself is how do I put it, beyond dreaming. So no, that's not all to himself. Proposal is clear, up to 1.5 million per officer per 12 month.
Typically companies award options for good performance on goal such as successful trial results, or approval of drugs an such. They can't just award options for no reasons, it would be too obvious and BoDs can't justify the award will result in shareholders nosing around asking questions. Take a look at the 12/19, and 12/20 sec filings from last year. That's how it's done, 180k here, 300k here, and 1.25 million there, it gets distributed to management team.
On conditions like SCLC results or even a buy out deal going through. Everyone is going to be too excited to care if SK and team is awarding themselves 1.5 million options each at 0.60. Make sense?
With RS going through at 8-1, shares outstanding would be reduced to about 19 million, SK and team awarding 10 million options will result in owning more than 30% of the company. Because 19 million plus another 10 million is about 30 million shares. In that scenario, depend on buy out price, they would get 30% and that's a lot of money. 1 billion buyout it means they get over 300 million. 5 billion buyout, it's 1.7 billion to management team. We're talking set for life and retire early here, that's what they are setting up to do. With options at such low exercise price, it means very little money out of pocket.
Management leaves too much trial out there, they can't fool anyone who spent the time looking at what happened between last year and now. That's why RS was voted no, unlike past proposals RS actually goes through, ok. When you're doing something shady, you're bound to leaves some foot prints, or finger prints you just can't cover up.
