I'm sure he'd love to get as many shares back as he could. He owned 100% of Pro Star Trust prior to the merger...
Just to keep it simple, without getting bogged down in all the minutiae of the deal, merging with HPTG (thereby going public) cost Zaric 15% of his company. However, he was paid cash (if anyone remembers the total amount of closing cash and upfront money please post it because I'm not at home and anywhere near my files), which, one could argue, was for the 15% he had to give up. But, he was given preferred stock and another warrant which would eventually give him his 85% but he had to wait at least 18 months after the merger deal was closed (which didn't officially happen until the end of March of 2016) before he could convert those financial instruments into common shares. As I previously previously stated, there is a discount rate upon conversion and obviously the cheaper you make the stock price the less it's going to cost the company to issue those shares out of the treasury because they have to be accounted for.
Now, Zaric just brought Pro Star Freight Systems public on his own (through an underwriter or underwriters) it would have cost him in the ballpark of 4 million dollars to do it (just based off the industry standard of 15%) AND a small portion of equity in the business. When our merger was done, Pro Star Freight Systems was valued at 27 million dollars. This number is found in the supporting documents...
So, to illustrate this mess even further. When the merger was done the company was valued at 27 million dollars. Today, the market value of the entire company is just under $37,000. Zaric never intended to raise money or sell a single share of stock in the past couple years. He makes plenty of money from the way the company is structured. If you go back and look at the 10kt filed you will find that Pro Star Freight Systems paid about five and a half million dollars to Arrow Freight...
Arrow Freight is Zaric's company and Pro Star leased the about half of their trucks at that time from Arrow. That income to him is like rent payments.... Believe me, he's okay with the money he's been making from Pro Star.... The big payoff comes from building an entire logistics company and then eventually selling that to an entity such as UPS DHL FedEx etc....
That's where they're really big money is.... And he's in this business for the money...
Has he been trying to shake off investors by letting the stock price plummet the next to nothing and never saying a word about any of the accomplishments they've made in the last 2 years?? I think so. He's probably pissed off that some of us are dug in.... And he knows we'll still be around public or private...
