There is no way, either legally or morally, that D
Post# of 96879
Posted On: 11/25/2015 6:01:43 PM
There is no way, either legally or morally, that Daniel or the company told you that without telling everyone. That is wrong on so many levels.
IF it is true.....I have a feel there are going to be lots of upset SH's.
Point by point...
NTEK wants to sell NTGL but it legally CANNOT due to the pending distribution of NTGL shares to NTEK SH of record as of 2/6/15.
They absolutely cannot sell the company without an audit. 100% will not happen. So if they ever do get an audit, they might as well distribute the shares first before they sell...no?
The proxy vote will offer those NTEK SH of record on 2/6/15 the "OPTION" of retaining those NTGL shares OR in lieu of the NTGL shares a equal number of NTEK preferred shares (shares amounts may differ due to the different SP of NTGK and NTEK. Only an option you can still keep your NTGL shares.
Preferred shares. No one can sell preferred shares. My guess is those would not be RS protected either.
Now here is the good part. NTEK receives a huge windfall on the NTGL shares they get to keep for those SH that choose the option of taking the NTEK shares vs the NTGL shares.
The windfall for NTEK is realized when NTGL is sold in whole or in part. Keep in mind NTGL will be sold at a market cap many times over its current market cap. This will put 10's of millions into the coffers of NTEK.
You have no idea if A)there is a buyer and b) if there is one, how much they would offer. No one does. Right now they have a market cap of around $3.5 M? For a company that does no revenues, that is very generous. For a company that does no revenues AND is not audited? That is very generous. That market cap does not include the shares owed to NTEK shareholders either. Does anyone really think that someone would pay millions of dollars in CASH for NTGL?
NTEK then uses the cash windfall to reduce their debt, increase their content and marketing budget and even possibly buy back shares. This is part of their plan they have outlined to increase the budget from 2M ot 10M and to reduce their debt ratio.
So far I have seen people speculating about 5 different scenarios for the proxy. Why don't we all just wait and see what it really is?
IF it is true.....I have a feel there are going to be lots of upset SH's.
Point by point...
NTEK wants to sell NTGL but it legally CANNOT due to the pending distribution of NTGL shares to NTEK SH of record as of 2/6/15.
They absolutely cannot sell the company without an audit. 100% will not happen. So if they ever do get an audit, they might as well distribute the shares first before they sell...no?
The proxy vote will offer those NTEK SH of record on 2/6/15 the "OPTION" of retaining those NTGL shares OR in lieu of the NTGL shares a equal number of NTEK preferred shares (shares amounts may differ due to the different SP of NTGK and NTEK. Only an option you can still keep your NTGL shares.
Preferred shares. No one can sell preferred shares. My guess is those would not be RS protected either.
Now here is the good part. NTEK receives a huge windfall on the NTGL shares they get to keep for those SH that choose the option of taking the NTEK shares vs the NTGL shares.
The windfall for NTEK is realized when NTGL is sold in whole or in part. Keep in mind NTGL will be sold at a market cap many times over its current market cap. This will put 10's of millions into the coffers of NTEK.
You have no idea if A)there is a buyer and b) if there is one, how much they would offer. No one does. Right now they have a market cap of around $3.5 M? For a company that does no revenues, that is very generous. For a company that does no revenues AND is not audited? That is very generous. That market cap does not include the shares owed to NTEK shareholders either. Does anyone really think that someone would pay millions of dollars in CASH for NTGL?
NTEK then uses the cash windfall to reduce their debt, increase their content and marketing budget and even possibly buy back shares. This is part of their plan they have outlined to increase the budget from 2M ot 10M and to reduce their debt ratio.
So far I have seen people speculating about 5 different scenarios for the proxy. Why don't we all just wait and see what it really is?
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