Think..Think Hard..No HARDER!
Now doesn't it seem reasonable to ask a simple question...WHY would YA distribute preferred shares to "other investors?"
Here we have a company which in the past (to my knowledge) has "always" acted in such a way as to own as much of the company as it can. Therefore, why a distribution? What cause and effect could be tied to an action that is so new and seemingly disruptive to the constant ebb and flow of these waters? It goes against history and all of the past rhetoric.
IMO, one of several possibilities:
1) As initial "Consideration" for a portion of some planned event, used as a non-cash means to bind the parties.
2) YA is in the midst of transferring control of Neom to another entity/entities that are interested in funding Neom going forward, or that can drive the model farther/faster. ...But then why the secrecy?
3) The initial repositioning in advance of some other planned event that could ultimately shift the tide (encompasses both 1 & 2, but is a bit more open ended).
4) YA is in need of funds and therefore exchanged equity for cash or other assets of equal perceived value. (I personally do not feel this comes anywhere close to the reality).
5) Some other nonsense upon which we can only offer additional conjecture.
However, among these alternatives, one item stands tall amongst the hedges:
While Neom is required to file material events related to transactions of such sorts, YA is not. Therefore, any third party negotiations on the part of YA (during a time in which they had mandated that Neom reduce expenses) would not require a filing and matters could progress in stealth fashion. Remember, Neom does not own any of the A/S...all shares have essentially been promised to YA. Therefore, IMO either Neom has to negotiate a new direct form of financing, or YA must negotiate its own transaction...or a combination.
I simply remain confident that something bold is developing in the background.
All of the above...JMO and worthy of nothing more than a personal effort to make sense out of nonsense.
Best,
Be Confident
