I haven't been around as long as some of you but this is my take on it. I bought in after the May 16 date when I became aware of the stock. While I'm not up to speed on all of the history, this is my view now. I would really like the deal to be approved, I bought a grundle of shares (paid too much for the first half in retrospect) and a quick profit would be very nice. IMO, if the the vote is no, it is due to the holders of the 12 million '144' shares who, according to my reading of Sec 103, pg 5 of the proxy do not get the cash pay out but get shares instead 'up to 25 million new shares'. Obvious dilution problem here which since I'm a 'Rule 504' shareholder and would get the cash, doesn't impact me. If all 6 million of the '504' shares voted yes (obviously not happening since folks like me who bought after May 16 couldn't vote), would still need a quarter of the '144' shares to vote yes.
If the vote is no, I expect a quick and precipitous drop. At today's close, I'm already down about 70K so I doubt I'd sell and lock in that or greater loss. My logic would be that the
only logical reason I could see for the large shareholders to vote it down is if they think they can either do better in another re-negotiated deal or the stock is worth more than 3.12. The street obviously doesn't agree with that valuation re today's price but there is at least one entity with cash in hand who does think it's worth 3.12 and was/is willing to pay that price. To me, that is an indicator of relative inherent value.
I've been nervous all day but the more I think about it, the more I feel that I can weather a 'no' and that patience would carry the day. That said, waking up in the morning to a PR that the vote was yes would just tickle me plumb loco.
Malcolm
