No, my concern was JB's note. There were discussions of his note having conversion rights at 50% of the current stock price. Post R/S, that could have amounted to 8 million shares. That could have been significant. Since there are NO conversion rights, it is a none issue.
Regarding dilution, other concerns are CB's 35% ownership, the cost of new money, considering the stock price, and the key employees/management option pool?
If JB isn't getting any ownership with the note, will they be overly generous to him out of the option pool? CB, his brother, is the gate keeper. Who is going to keep CB in line, considering what he is paying himself with the RS? If the RS passes, the BOD has 500 million shares authorized under their control. CB can afford to be generous since has his new found 35%.
With all this new ownership, the OLD common shareholders need an explosive picture/story to see the value in voting for this, other than faith.
What about the revised Padgett #11 numbers, if any? What about Padgett #12 H, or how about the Mississippi formation and results of Murphy-Nash #1? What about other activities, such as drilling plans, new found marketing plans, etc.... Bottom line, what is going to support and raise the new stock price?
Will he hold back all this information until he sees the results of the vote? That is the question.
AI
