I think your questions to them...forced this clarification. Well done.
But there is one VERY glaring problem in what they are saying. They say the following in the clarification:
"The Company was solely interested in repurchasing shares of its Common Stock in the market from Sellers other than Loan Term Convertible Loan Note Holders or from any other third parties that have directly or indirectly contracted with the Company and/or its subsidiary companies. "
How is it they can buy in the market and ensure they are NOT buying from those entities??? Those entities are not suppose to be affiliated so they can do whatever they want supposedly. And if they have any remaining free trading shares then there is nothing to stop them from selling into the buyback.
Unless those shares represent the TOTAL common shareholdings of ALL note holders and third party contractors. I am not sure that is the case...but I haven't read through all the filings today.
If any of those entities described (which means ALL of the note holders and other third parties receiving shares) still hold any common stock then it would be impossible for the company to actually achieve that objective as stated.
The reason for the confusion was that the only way to make sure that cash is not used for the entities they describe is to not buyback on the open market.
And lastly, there is an interesting question as to whether they are violating securities laws by providing this preferential treatment to SOME common shareholders and not all. Only some common shareholders are being allowed to make this sale of shares back to the company for the pref B shares. Not all are being given the opportunity to do so.
This will be interesting to see how this plays out.
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