Seven Arts Entertainment Inc (SAPX)

[sbc357]

These companies usually have control of the votes before they ever put anything out for shareholders to vote on. You could lay odds that the board and those associated with the board have enough votes to have the majority to vote this in.
A RS doesn't matter to them, they will just issue themselves more shares to make up for the losses and pay themselves more than enough in cushy salaries to make up for any losses they MIGHT book to their own personal accounts.
The only people a RS will hurt are the retail shareholders, you can bet on that.