Jerry,
I am not Charlie, but I can share some important thoughts.
If by chance FASC does become the growth stock that Management and others believe, present longs will have much to protect and it would be very strange not to have a board representing shareholders not just management.
How-ever...at the present time we are in a transitional moment of
the KDS technology finaly being recognized a important tool in Bio-fuels, waste to energy, fertilizers etc. We also are in a position where Management Salaries for Compensation the way it is structured not only limits ability to finance it also discourages interest by large investors who are not interested in getting dilluted out of existance. If we do not get dilluted we are also
vunerable to a default where we could loose all our equity through assetts as collateral for salaries.
A board of directors that rightly represented the shareholders would structure compensation to not only have a carrot for management with large compensation for successes, but would add a couple other benefits. By keeping the books cleaner with out the threat of default or dillution there would be more competition for shares due to larger interest and PPS would go up considerably. Cleaner books would also put FASC in a better position for a line of credit for Manufacturing as many Machines as they wanted to as the sales came in. It is very common place for Commercial banks to finance projects and recievables.
(been there, done that)
Additional benefit of a board of directors would be Industry professionals in both the financial arena and similiar Industries
having seats on the board. These relationships would open doors.
I believe Cal and Brian to be good people. How-ever, I personaly know as a fact in dealing with small businesses that
FASC could be in a much better position.
FASC desperately needs a board of Directors that respects and recognizes Managements independent needs to run the Company on a day to day basis and yet can set a better foundation for the Companies growth and finance.
Board of Directors and Company Management are two distinctively different rolls in business. With this said, a Board of Directors must be carefully put together. Management should look at the Board of Directors as a support not a threat.
It is possible that Brian and Cal could be worth much more in the financial sense with a conservative % of shares as they do now own rather than owning the whole thing. The difference is growth.
I can own 100% of a Company that is limited or 5% of a Company that is growing leaps and bounds because there is more support and interest in its success by others.
I have friends that would probably purchase $30k to $50K or more each in shares if the company had an independent board and was not looking at the debt for Salaries being a threat to Assets.
They have the money and live off their investments. I am sure many here have similiar friends. They do not just throw their money away.
It is really quite simple.
RJ
PS. I would probably double my investment here if things were structured differently and there was an independent board.
AI
