Maybe the sale of paint is taking longer because the original buyer backed down once he was able to do his DD and see all the company records, and especially after seeing the 3rd quarter numbers which he saw at least a month before we did. Maybe there isnt a buyer in place and thats why the deadline with this buyer has come and gone. Didnt you say your source said there was no paint deal yet?
As for Cornell and whats been written off each quarter, yes there is interest on the preferred series of stock they bought, but NEOM has the right to force conversion if certain share prices are met or something to that effect at the time the preferred is required to be converted by. I dont remember all the details right now, but if you check the filing, and believe neoms pps is going to go up in the next two years, the conversion of the preferred is not an issue, and therefore the money used to buy them is not an issue, unless you believe the pps is gonna stay right here.
They dont have 27 million owed to them, they own capital stock for 20 million of that, it just so happens that capital stock acrues interest until its converted to common shares.
And yes some things management has to run by them especially if it involves more dilution, or selling any assets they hold as collateral. But they arent the one decides whether the subs are put yup for sale, they can just vote yes or no on the issue. Management is required by law to make the decisions, and in doing so has to consider their opinion on anything that effects their collateral. The corporate laws are quite clear on that. If you saw other firms with venture capitalists calling the shots its because the management and board allowed them to, and they shouldnt have. The board has a fudiciary duty to all its share holders, not just the capitalists.
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