Call from WPCS solicitors this evening spurred me to review the financing arrangement that so-called management wants current shareholders to approve. This thing is a total horror show. If you are not familiar with death spiral financing, just search and familiarize yourself with it. Can't tell whether to laugh or cry over what Hidalgo wants shareholders to approve. He wants owners to vote for a number of Board members who have been in the Boardroom for years as this stock has crumbled. Then he wants holders to approve a reverse split and (drum roll, please) an authorization to quadruple authorized shares from 25mm to 100mm! Then it's on to asking for owners to approve this death spiral financing that seems likely to wipe out current equity holders while the financiers have protection at every turn, as well as a reset provision that incentivizes them to short WPCS down to as low as it will go. No way I am voting for any of these proxy items.
The entire proxy ballot was approved by overwhelming majority. Apparently, they never had any problem getting the votes. The bashers are substantially outnumbered. There are many more investors behind this stock and it is obvious with the vote. It looks like a good investment. We'll see how the third quarter looks.
I totally agree axcet, I got the same call. This is another weak attempt at Andy and his incompetent management team (if you can call them that) to retain their overpaid salaries. any shareholder that votes for this might as well just burn their money because we get screwed and they get covered. I won't live long enough to recoup what I've lost on this total disaster of a company. When the word gets out on the street about this debacle they wont be able to keep an employee... and frankly I wouldnt blame them, WPCS's days are numbered and they are running out of options... just wait till the next financial statement, it will be another smoke and mirror show!....if the last that long?