Re: Authorized Shares (A/S) Increase, Preferred A Series and OT
Dear all OPMG fans and <flipping skeptics>:
I am happy to report that I am officially done today (minus three lectures I still need to give) until August, wherein I will be joining another university research team on a very special project--just received the news this morning. Between now and August, I will have plenty of time to give my input on what I believe is going on with OPMG.
Read everyone's posts,--thank you--all sides equally appreciated and considered. It would be foolish not to do so because even the most opposing views can be helpful in the D/D process which I not only appreciate but encourage everyone to consider. Otherwise, the board becomes completely polarized and unable to look at all possible dimensions of our investment. OK, enough with the lecture--sorry.
Authorized Share Increase to 1.5 Billion vs 1 Billion:
1. When I ran the numbers for the needed reserve on the A/S side, I came up with 1.08 billion shares in A/S (1 billion 80 million) to cover potential conversion of warrants and full vesting of the preferreds to management.
As appalling as the figure 1.5B may seem to many of you, I can tell you that I have NEVER observed a company who registers exactly the amount of the actual reserves needed, here 1.08 B. Not only is doing so lacks forward thinking, it is really an odd number to register. Think about this and you will feel better about it. :D
2. Should the company have reserved 1.1 Billion then? Absolutely not. If you recall from the CC, the company has plans to bring on board additional EXECUTIVES to push forth Phoneguard.
In the real world, top notch executives do not work for free. The company needs to offer additional incentives to bring good people. If you took a look at the compensation plans of OPMG's executives, they have always been milestone driven (specific), hence I do not see a deviation from what has been in the past!
3. Related to #2, I surmise that the company reserved an additional 500MM as potential (emphasis added) incentives to new and old executives in the event they achieved specific milestones. I expect the milestones to be meaningful, growth driven which means shareholder value IN THE LONG TERM.
SERIES A
Related to point 2 and 3. Could management be working on a really big deal, another major milestone in the life of the current OPMG?
And knowing we will have new executives hired, there is a chance that Frohman and St. Clair will revise their compensation plan to participate in SERIES A vs. the current arrangement and give what they had previously to newcomers.
Another scenario is that, perhaps, there is another party like Bieber who wants the Series A for their contributions here.
At the end, no one knows until we really know--we can only speculate. The point is, why be negative when you really don't have firm reasons to feel negative?
I will be posting in series to give some more thoughts on the rest for those interested in exchanging thoughts.
Have a great day all--longs and sh$theads alike,
BB2.
AI
