No, and that is a MAJOR issue down the road. I don't like NetVest's conversion of 12 mm shares of NETZ into 220,000 shares of ESVS (that is about 6 cents a share), but I believe that deal was coupled with 1mm shares of preferred of ESVS convertible into about 2.7 mm shares of ESVS common, which would give NetVest an overwhelming controlling interest in ESVS. Not bad for no cash exchanging hands.
Considering that in March ESVS had nothing to offer but NASDQ listing (which is something), and NETZ has all the advertising revenues, etc., I would be very unhappy if NETZ shareholders got squeezed down on stock price.
This relates to my 2 prior messages expressing concern about ESVS hiring NETZ technical people, and pushing web opportunities, before a merger deal has been finalized. This all could arguably ultimately increase ESVS value, and be used to justify different stock exchange ratio - to detriment of NETZ. It seems to me that NETZ management (albeit the same as ESVS) has to protect its technology and revenue base against any unfair diversion to ESVS, BEFORE any merger/combination is worked out, or there otherwise will be a shareholder lawsuit for predatory conduct. And, I will be right there protesting as well.
Assuming no predatory conduct by ESVS against NETZ, I feel VERY COMFORTABLe in seeing ESVS hiring technical people, promoting Mincheff, and doing other things that are consistent with NETZ's operations being merged into and advanced through ESVS. This is proof enough for me that a deal is imminent. |
