Scoobey - Enlighten me on the subject of 10,000,000 shares at @.62.
I understand about the assign value to a stock for the SEC to approve, but does it mean that eConnect can only sell the shares at any price above .62 cents but not below?
Regarding the additional XXX shares Tom will get, I don't have a problem with that. If the management can bring this stock to $3.00 for 20 consecutive days so Tom can buy (I forgot it was 13 or 23 millions) more share at .30 cents, then Tom deserves it. It's a win win situation for both management and shareholders (most large companies set up the incentives that way (may be not that many shares), but I still don't have the problem with that.
The problem I have is (as I stated on my report about "conflict of interest"),when Tom uses his voting power to control the Board of Directors of econnect, to sign more agreements for more payments to
ET&T. Being a majority shareholder of eConnect, he can do what ever he wants with those deals. Remember that "net earnings" is after "cost of goods sold" and "expenses" (payment to ET&T is a cost of goods sold). It means that eConnect can be operated at a loss, but Tom and his ET&T would have postive earnings while the shareholders end up with a net loss and a negative equities.
Here is an example for illustration:
Sales.........100,000
COGS.........< 70,000> (40,000 cost of sales + 30,000 payment to ET&T)
Gross Income...30,000
Less Expenses.<40,000>
Net loss......<10,000>
The end results is that ET&T make $30,000 while the shareholders of eConnect loose $10,000. I hope you all see my point. Again, I welcome any opinion from everyone including Tom.
Dai |
