Hey ST, thank you for your always thoughtful responses.
I really didn’t put a lot into that post based solely on who I was responding to, but you are absolutely correct. Thank you for elaborating. These will be issued as warrants to purchase as part of his new contract. So it’s not like their giving away the keys to the Castle, he’s always had those anyways. He has the option, but not the obligation to purchase the warrants. I didn’t see a time frame listed, unless I missed it, but there is typically a time frame associated with warrants. So yes he gets them at a discount, no doubt, but they aren’t just shares given out freely to him. The cost to him is still a whopping $2.8M. Which I’m sure the company could use if he decides to execute these warrants. It’s no different than Andrew Garnock coming in and buying more shares. We all celebrated him and all he did was invest. Anshu is the reason Verus exists as it does today. It’s his vision, his persistence and his connections, that have provided this company the growth and expansion over the last few years, but mainly the last year.
I’m going to find out from Mark if he has to execute these warrants in a specified timeframe, but if he does, imagine what $2.8M could do for the company? They could pay off existing notes and retire the shares issued in convertible notes. That would go a long ways toward shareholder value.
This doesn’t bother me. I don’t see this as a bad thing. It’s not a cash expenditure. It shows as a loss on the balance sheet, but I would just assume rip the bandaid off now and get the shares into the hands of our CEO and driver of all things revenue. Revising his comp plan in this matter will benefit us all in the long term as we can show profitability sooner without those balance sheet costs, as you mentioned
Plus, If he sinks $2.8M of his own money into company shares, that’s a sign of strength to me as a shareholder!
Again, this is my own interpretation of the events unfolding. I do think this has a positive shareholder affect, in more ways than one.
Thank you for the kind words and all the same to you and yours!
“A wise man thinks ahead; a fool doesn’t, and even brags about it!”
Proverbs 13:16
