Really? Neither Southern Cross or Menedez will gain if the stock price does not go up from 2 dollars a share..
That's it.....nothing more simpler than that! Menendez group will get a percentage of what gains Southern Cross gets from stock price going above 2 dollars a share. Its just like paying a CEO of any company......stock price dependent as they now only run the company and not own it. As an example: If this stock goes to 3 dollars a share .....Southern Cross will have made 50 percent on their initial investment. And Menedez will get a payout of only a percentage of that 50 percent...nothing more. Also on the other hand, Menendez will get nothing if the stock remains under 2 dollars a share. I will take this ride along any day of the week. Even more so a gauranteed stock now!