Hi Bank, First of all, I have to restate that I don't personally know the guy and haven't done any digging as to his particular past. My before and after comment was for shareprice and shareprice alone. What the shareprice was when he took over, and what it is right now.
1)I believe there could have been other options open:
a)some people here have talked about finding funders for the company (directly into WSGI). Even if the funding had taken place at 0.005 (the stock was close to 0.01 at the time) representing a significant discount, that would have still been better than selling the company prematurely imo.
b)Even if Glenn intended to "sell off" the company, he should have had a bid-like process that was more open. Even in bankruptcy, there is an open bid for the assets of the company, so that shareholders are assured that they are getting the "best option" out of all potentials. Currently we got a mere $335K and if coastie is to be believed, 5% of the new company with only LTA as it's sole asset with potential of actual revenues. I do not care if people say it is worth $10m as shareprice is mumbo-jumbo without actual revenues to back it. Right now it would take huge and significant orders to JUSTIFY DRNE share price, not to mention move it up. A similar order to what would be needed to justify the valuation that Coastie suggests by shares outstanding in DRNE would have propelled WSGI to at least $0.20-0.30. Surely a better deal could have been found for the sale if there had been a more open process imo. Something that could have given more upfront money or 40-49% of the company. My favorite would have been something like substantial money ($5m) upfront, then 50% of all forward gross profits (like a royalty deal).
c) perhaps bridging loans with future GTC sales as the security, and a nice 10-20% interest may have helped till some orders came in. Sure other creditors may have protested, but hey if they didn't protest this major sale of asset for tiddlywinks then doubt they would have protested.
2) One should always count the costs of an endeavor prior to starting down a path to make sure you have enough sustainance to reach the goal. a)Even prior to the sale, people like myself and Rattle and a few others were strongly suggesting investing in GTC by hiring people (could even have been on a mainly commission basis) to sell the free minutes and bring in sustainable income by which to pay bills and potentially have some extra. GTC-usa was instead totally IGNORED, and NO salespeople were ever hired or trained, thus the ramp up was solely based on ONE MAN'S PART-TIME EFFORTS!! (thanks and kudos to David) b) I would have found out the entire process of sale to the army, the lower and upper limits of order potentials, agreed upon timelines for testing and ordering (surely the military process should be pretty transparent), and built in a double to triple buffer for those timeframes. In my opinion, the sequestration did not just happen yesterday. If military orders were found to be too far away and not that many expected due to budget cuts, I would have concentrated my efforts on civilian, non-military sales and rentals as I have suggested many times in the past. Temporary/ permanent cell towers, large event surveillance and comms, traffic monitoring, homeland security and many other less tedious and long drawn avenues could have been worked upon to achieve timely and more consistent revenues.
Thanks Bank for asking how things could have been done better.
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