GEH, did you talk strait to him about investor sediment? Not happy. Does he know that if he comes out with the original proposal that it might not pass? I mean 500 million shares authorized, Preferred Stock clarification, plan etc....
Sometime we want the moon, but... Maybe this needs to be a package of stock/capital and bank financing.
With the producers we have now, what about bank financing? I know of his experience with bank loans, but this isn't the 80's. His proposal could be expensive money. Maybe we have an interim step in the financing to get to what he wants.
Regarding the Preferred, I have been involved in Venture Capital financing in the past. Preferred is the way to protect yourself, establish covenants, like his 2 Director seats, and to get leverage. What are his covenants with respect to splits, either way? I have seen Common Stock holders taken to the cleaners before. It does happen. That has to be clear.
We waited two years for Monday's announcement, with little to no communications, and it was preempted by Friday's release. You can understand why people are upset/concerned. This is what happens when you don't communicate.
I hope something good passes and we move on, but he better package something that sells.
AI
