I still do not understand what you think is a better way?
Between a lawsuit or not? Neither do I, I'm torn, and we will not know the best solution until it's too late.
The cash dividend policy helped a bit, but - as a said - the dilution is my main issue and we have no idea how many more share that remains from the 55cents - or if there will be more.
It would help if they corrected as much of the stupid things as possible, especially the employment agreement. As pointed out; at the current PPS Solomon is entitled to 850k shares. Using a book value pr share of 15$, that means that Solomon is entitled to 62% of SIAFs net profits as shares... Again; it is waiving a red cloth in front of our eyes, I don't think it is legal, and it gives fuel to shorts that not even Solomon believes the book value is real.
Solomon could easily make it so that he suffers as we do, and I think the PPS would benefit from it and hence a win-win-win for all parties; shareholders would suffer less, the company would have to dilute less, and Solomon would have reduced the risks of lawsuits as well as having his shares worth more.
There might be a third option that is better; write a letter (signed by as many retail shareholders as possible) to SIAF with a warning about a possible lawsuit based on mismanagement, but that we will not pursue it under certain circumstances. For instance that he has to redo his employment agreement into something that was predictable from the Merkur admission document, set a convertion-rate of his a-shares (so that we know that he'll not dilute the crap out of us), allow Garret or some other friendly shareholder to convert some of his common shares to a-shares (to a point that this friendly shareholder holds 51% of the a-shares), etc. I don't know if that would lead to anything, but it would be a win-win (get rid of the potential lawsuit, reduce risk and increase credibility, force Solomon to feel our pain so that he is more likely to take actions that don't affect us negatively, as well as keep Solomon on the areas he excells, but also have his balls so that the friendly shareholder might step in if the mismanagement continues)
Handla I agree that the best way to tackle the current deplorable situation is to buy more shares even if the risk is high. What will be lost by buying more shares at the current pps is not much compared with what is lost already if the pps stays at the present level or goes even lower. Since the pps is so low now I think most shareholders are able to buy more shares if then want to do so. But in doing so one should admit that there is a fairly high risk that the new shares may go even lower if the dilution continues. The lower the pps higher the dilution to raise a certain sum of money - vicious circle.
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