If you're Eric's pal Victor McFarlane and you are buried in ANY, what do you do?
They already own 25.3% of the stock. And we know the company is in special loans with the bank and at risk of more defaults. Another stock deal plus warrants (that seem to be never be worth anything) is yet more risk.
So bleeding in another $2M in a debt position above the common bagholders probably makes sense, to help protect his equity position, but not dig a further hole by buying even more stock.
This way if there's a restructuring, once Opus is paid. then if Cyrus is paid, they will be first in line for the next chunk, if there is one.
It would also be a natural instrument to do a debt to equity conversion if/when the other creditors are paid off. They could convert it into a massive number of shares.
Of course now that they have blank check prefs then have even more tools to crush shareholders.
But don't worry about management. They just got a fresh reload of of a "performance incentive plan" approved - another 18.7% of the stock! LOL!
"The proposed amendments to the Plan would increase the maximum number of Shares that may be issued pursuant to the 2015 Plan by an additional 1,250,000 shares, representing approximately 18.7% of the issued and outstanding shares of common stock of the Company issued and outstanding on the Record Date."
Of course, it was also important to put this in:
"restricted stock units granted under the 2015 Plan as described below during any one calendar year to any one individual would be increased from 80,000 shares to 300,000 shares."
Now, I wonder who will get those? Hmmm. Any guesses? This kind of talent doesn't come cheap you know.
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