Fister; This excuse came way after the dividend should have taken place, but they chose to keep us in the dark...
And, as we learn now, the excuse came after the 20% dilution! When they realised that, they should have treated it as a material event IMO.
Also, I don’t buy the tax bill thing – in which other company is incompetence an excuse? As you point out, they have had legal advice on this - didn’t they talk with them before «declaring» a stock-dividend in the next 2-3 months?
Put this way, it seems that SIAF tried to manipulate the PPS so that ECAB would settle for fewer shares. However, if they had set an ex date for the dividend, the PPS would skyrocket and we would have had an 1-2 million dilution and not 5 million (it would also give SIAF the credilibity we so desperate need). Worst case; They could sell the shares in the market at a «premium» and spend the money to repay the note and pay the taxes for the dividend, as well as issue a cash dividend.
And now we learn that there is no tax on the first 23.89% after all - they didn’t know that until now? It has been suggested to them that they could split the dividend in two, but said that this could be viewed as manipulation - however, in the 10-K they make it sound like this actually is an option.
The worst thing is that the 20% dilution could have been avoided, and would have with a normal management. Heck, it has been suggested here several times that they should give a discount on the receivables. THAT is what would be in OUR best interest, but it is NOT in the interest of Solomon’s ego and personal wallet.
At least they are honest in the 10-K about this;
One of our directors and officers controls a majority of our common stock and his interests may not align with the interests of our other stockholders
For the next clumsy phrasing I assume we're talking about voting power, i.e a-shares;
Solomon Lee, our chairman, chief executive officer and president, controls our company and beneficially owns in excess of 50.1% of our issued and outstanding common stock
Unfortunately, last year we have had hard proof of this quote from the 10-K;
Mr. Lee may cause us to take actions that are opposed by other stockholders as his interests may differ from those of other stockholders
Such a stock doesn't belong on Merkur. I breaches the most important rule there is there...
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