Let's see if I can stick my foot in it.

My question when I was looking for answers.

Gentleman, I thought I would share some concerns that have surfaced.

In the past you have provided some rationale as to why management would not consider selling the company. Discussions about a cheap buyout of POET have been addressed by the fact that any buyout would have to be high enough to provide a good return based on the pricing of management's options. In other words management's interests were aligned with shareholders in that the pricing of any buyout would be high enough such that all shareholders would benefit.

Obviously the repricing of management options totally changes that dynamic.

What assurances can management provide that this move to reprice your options will not ultimately result in management moving towards selling the company at a price where shareholders fail to have  equitable benefit? It is a concern which as yet has not been discussed on the forum.

Please address this question.

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The response convinced me that this possibility was remote. Ultimately there is nowhere near the control required to sell the company. Shareholder expectation is known and we expect to be well rewarded for this painful experience.

My comment: What makes anybody think that Institutional investors will want anything less. The biggest institutions to date continue to remain under the radar below 10% ownership.

1.  Companies are not sold – they are bought.  Any M&A novice will confirm that.

2.  Buying this company is already extraordinarily difficult for three reasons:

         a.  Usually a buyer would need at least 20%- 40% held by institutions to begin a negotiation (they do not deal with individuals, unless your name is Musk or Bezos or Forbes or Buffet). 

         b.  This means a tender, and Canadian law requires an extended period for consideration of a bid to allow for additional bidders. No buyer wants to expose their bid to a lengthy process.

         c.  Shareholder expectations – anyone reading Agoracom, would immediately understand what the valuation expectations are from our shareholder base.