You guys just don't get it. But I can't expect you would because this company is not run like a normal company.
Hypothetically, and this is purely an academic exercise, I'll be company management for the next few paragraphs. My goal is to transfer as much of the company's value from the minority shareholders to our group as possible. And to make it more interesting, I'm going to spend as little of our money to do it as possible. I am perfectly happy to spend company money to do it, however.
So how do I do that. Remember, I have certain advantages that no one else has. Let's name them - and remember, these are all hypothetical.
1) I own the board of directors. They may act like children, but they are my friends.
2) I get paid, in part, in stock. I get to set the stock bonuses along with my poker buddies on the board - all hypothetically, of course. You minority shareholders can feel free to complain. We'll get you an e-mail address to send your complaints some day.
3) I know where roughly 12% of the outstanding company stock is sitting, untradeable, and I have absolute authority how, when and under what terms those share become unrestricted.
4) I and my associates have absolute control over the company. There is no annual vote because I control enough shares to pass my agenda without question.
5) If the shares decline for a few years, my associates and I can acquire a boatload of shares on the cheap. We can go from majority ownership to supermajority ownership. And the best part is that the company will pay for almost all of it. (Note, this is all hypothetical, you understand).
6) It is easier to make shares decline than it is to make them rise. All one has to do is treat the minority shareholders like dirt and they will start to sell. If I cease to do any promotion, the stock will float like a lead weight. All it takes is time, and I have years to play this game.
7) I never have to pay any minority shareholders off. Not now, not ever - hypothetically speaking. I can acquire absolute control and as long as I do nothing to confirm my strategy, I have plausible deniability. The minority shareholders can piss and moan all they want. We are still a OTC:QB company, still current in our filings, and still trying to understand why our stock price is at 40 cents and not $2.
Hypothetically speaking, is any of this beginning to sound plausible? So far, it is going according to the script. You minority shareholders are still optimistic and believing that the boys in the executive suite are working hard for you. That keeps you quiet for longer. And that's just grand. If you guys start to make noises, after 4 or 5 months of public grumbling, the company may throw you a bone and re-instate the conference calls. But alas, some fool makes a snide comment and therefore this experiment will be quickly cancelled. That will shut you all up for another 6 months, hypothetically.
It's now 2021. There are barely enough minority shareholders to maintain a listing. Suddenly, the company's fortunes begin to change. But alas, you guys sold your shares 2 years before the company's fortunes begin to pick up. Management wins, you all lose. Please play again later. Hypothetically.
