That's why they are issuing a 'share dividend'. The people that are enticed by it haven't asked themselves some very simple questions, such as:
1. why would the CEO of a 'start up' company immediately dilute his own holdings by over 50%?
2. what have shareholders done to deserve a total stranger (Cris Galo) just giving up such a large portion of his company that hasn't even had a chance to post any revenues?
3. how much sense does it make for the CEO of a start up to 'reward' his shareholders for simply being early to a play? Afterall, it seems as though he's just giving away a huge share of his company for nothing.
4. In the most recent PR from the company, they said:
Prime Restaurants, Inc. (PINKSHEETS: PRSU), today will address certain shareholder questions and comments regarding its recently announced 3 for 1 stock dividend along with other company issues.
Why did they not disclose perhaps some of the most vital information that shareholders need? What will the O/S and A/S be after the split? Why didn't they post those numbers if they are trying to appear so transparrent?
5. As it stands now, Galo owns 82% of the company, and shareholders own 18%. There is even less clarity after the split, as we don't know if the entire O/S will go up by a multipe of 3, or will it go up just enough to cover the 'dividend shares'
6. what about the A/S? Will they use this opportunity to triple that to 120M? That is my guess.
7. If PRSU, a totaly seperate entity bought the restaurant from Hayter and IBAC, then why did they need Hayter's holding company, The Sanibel Restaurant group? Holding companies are unique to the people involved and do not change hands, they are disolved, not traded, somewhat like limited partnerships.
8. Why did the company need to mention that Ed Hayter wasn't part of the company in a press release? Were there so many shareholder inquiries that they couldn't have addressed them individually? IBAC did the exact same thing regarding the Astroms, and long after that press release, the Astorm names showed up on company filings.
9. Why was Cris Galo's contact number given out by the transfer agent the exact same number as Turner Hughes, one of Hayters other companies. If it was IBAC's former number, it could have been considered a simple mistake, but Turner Hughes had nothing to do with the restaurants, so this was very deliberate. Why would a Nevada company operating in Florida need a New York phone number, and of all places, the same answering service as Ed Hayter's? What a small world LOL.
10. Why was the name Prime Restaurants chosen when it is the same name as a legitimate restaurant group in Canada?
11. is it just a strange coincidence that this very same restaurant was owned by one of the Hayter/Astrom former companies, Prime Holdings, which also owned the very same holding company, The Sanibel Restaurant Group?
12. finally, if the company was being so straight forward and up front, why did they choose a TA who's policy it is not to give out share information to the public. This is no different than a gagged TA. Shareholders should call Cris and demand he put in print the 'post dividend' share numbers, even though it is very unlikely.
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