Cheers for those who provided feedback - I appreciate the views - even if you think there's no hope in hell etc - in some ways that is feedback in itself - testament to the negative sentiment amongst shareholders...
IMO Excitement about BPX was semi- short lived, and Sentiment is still low... no news from management on BPX, no news about the progress, about the new hires in preparation for launch etc...
Anyway, back to returning the shares... there's no harm in asking... right?
IANAL, but put together the following letter in my best handwriting, for those who care to read / want to provide feedback - that is welcome.
I'll be updating/ sending this to BPG early next week. May get no where, may get no response, but better than doing nothing etc.
Re: Proposal to gain Confidence and Marketing from Retail Share Holder as a Mutually Beneficial Agreement
I am a Share Holder of ASX:BPG, and would like to make a proposal to BPG Management on behalf of myself and many retail shareholders, for the forthcoming launch of Byte Power Pty Ltd’s Crypto Exchange (“BPX”). I have come across the website bytepowerx.com and congratulate BPG management for their handling of the multiple difficult situations that have arisen since late last year and with getting BPX stood up against many odds. There is a great sense of achievement from the many current BPG shareholders I am in communication with.
However, as you are may be aware, there is one action that causes a slight negative sentiment amongst shareholders, which was the issuing of the 830 Million Shares to BPG directors following the BPG AGM on 15th December 2017. In the Notice of the AGM, specifically the Explanatory Memorandum respective to Resolutions 6, 7 and 8 (Approval of issue of Shares to Mr Raphael Pham, Mr Yano Lim and Mr Alvin Phua)
It was quoted:
“…The shares are issued in lieu of once-off discretionary bonuses for the directors in recognition of their significant contribution and leadership in guiding the company through challenging times. The three Directors of the Company have for many years not received Directors salaries yet continued to lead the Company. In particular, the CEO Mr Alvin Phua, has supported the Company over many years by not drawing salaries or wages to provide the Company with the best chance of success.
Their loyalty has served the Company well and through the recent transaction with Soar Labs, they have brought the Company to a significantly improved net asset position. The net asset position has improved from -$5,604,357 as at 30 June 2016 to +$12,762,442 as at 30 June 2017. This turnaround has been achieved through the hard work and dedication of the Board. The Directors believe that because of this support this has allowed the Company to negotiate successfully the recent partnership with Soar Labs which places the Company in a strong position to explore future opportunities. The non-cash form of this benefit will allow the Company to spend a greater proportion of its cash reserves on its operations than it would if alternative cash forms of remuneration were given to the Directors.
The Board declines to make any recommendation in relation to the issue of the Shares to Mr Raphael Tham, Mr Yano Lim and Mr Alvin Phua on the basis that there may be a conflict of interest…”
Resolutions 6, 7 and 8 were all passed.
Subsequently Shareholders have learned that, at the time of the AGM, the partnership with Soar Labs was questionable and that BPG had already commenced negotiations with Noetic Synergy as a replacement to Soar Labs. Further, the Half Yearly Results published on the 28th February 2018 show that BPG were not in a favourable position as claimed in the Notice of AGM. These combined failings are in my opinion the cause of the above mentioned distrust and negative sentiment.
Proposal:
It is in my believe BPG Management and BPG Shareholders are aligned in wanting BPX (and in turn BPG) to make a huge success and bring financial prosperity to all. A mutual way to achieve this would be for the BPG Share Price to increase in value, which the shareholders I am in correspondence with believe can and will happen with a successful launch and uptake of BPX. It is of our collective opinion that this will take a significant amount of marketing and promotion through media releases, print media and positive coverage across social and private networking sites. The latter being where Shareholders can significantly help BGP achieve the mutually beneficial outcome. It is also worth to note that many shareholders are active in crypto currency trading and communicate on public and private crypto forums, such as Twitter, Facebook, Instagram, Telegram, YouTube etc. therefore many BPG shareholders may even become customers of BPX one day themselves.
As an incentive to current shareholders to help promote BPX across public and private social networking sites, BPG could issue current shareholders performance right shares based on Volume Weighted Average Price (VWAP) targets of the BPG share Price. The number of shares to issue each existing shareholder should be calculated as a % of the size of the shareholder’s current holding. We believe performance rights shares should only be offered to existing shareholders (as of today – Date XX/XX/XXXX) who do not sell a single share before the VWAP targets are met / or before an agreed date. This will both encourage and incentivise shareholders not to sell their existing holding, and, as mentioned above, to help with the promotion of BPX in order for BPG to meet the VWAP targets in this incentive.
Finally, to restore trust and positive sentiment in BPG, it would resinate extremely well with shareholders if the above proposal of issuing shares would be allocated from a portion of the 830 Million shares that were issued to BPG directors from the AGM – specifically, the three Directors that received the 830 million shares should return half of these shares (415 million) proportionately. This would bring the total BPG shares outstanding to approximately 2.6 Billion, and, for example, 415 million to be issued, perhaps, in two tranches;
-Tranche 1 – 50% (207,500,000) could be issued once the BPG share price reaches a continuous 10 day VWAP of $0.015
-Tranche 2 – 50% (207,500,000) could be issued once the BPG share price reaches a continuous 10 day VWAP of $0.020
In this example, should any existing shareholders holding decrease before the continuous 10 day VWAP target is met, they would not be eligible for receiving their portion of shares for that, (and subsequent) tranche: These shares should be redistributed to the eligible shareholders still participating.
Using the example above (After 415 Million Shares are rescinded)
Shareholder (A) holds 52 million shares (2% of the 2.6 Billion Shares outstanding).
BPG Resume Trading
Shareholders help promote BPX and BPG.
No Existing Shareholders sell any BPG shares
Within the agreed timeframes, BPG VWAP is 1.76c for a continuous 10 day period (above the 1.5c target).
Shareholder (A) would receive their 2% portion of tranche 1 (2% x 207,500,000 = 4,150,000 shares).
Some Shareholders decide to sell or partially sell their holding (equating to 50% of those eligible for this incentive)
Shareholder (A) does not sell any shares.
Within the agreed timeframes, BPG VWAP is 2.33c for a continuous 10 day period (above the 2.0c target).
Shareholder (A) would receive their 2% portion of tranche 2. In this case, some of the eligible holders – owning 50% of the BPG registry sold shares, therefore Share Holder (A) would double of the incentive for Tranche 2 – (4% x 207,500,000 = 8,300,000 shares in this case).
Why we believe BPG Management should consider this proposal:
- Retail Investors account for the day-to-day share price fluctuations.
- It would be in the Existing share-holders best interest to:
- Keep hold of their existing shares upon BPG suspension being lifted
- Actively seek to promote BPX and BPG across media channels, social networks and other
avenues to increase the BPG Share Price.
- By BPG management rescinding 50% of the 830 million shares it would restore sentiment and trust
amongst BPG Share Holders.
- BPG would receive ‘free’ advertising and promotion of BPX from many BPG Share Holders which
would have a far greater reach across social networking sites than media promotions alone.
I trust you would kindly consider this proposal and irrespective of any decision, I wish BPG Management all the success with the launch of BPX and the resumption of BPG trading again.
Kind Regards
BPG Price at posting:
0.9¢ Sentiment: Hold Disclosure: Held
