I like the prospects overall, but I still don't think I have the whole RPS story.
Its easy IMO. Stakeholders weren't getting the valuation for Reseverlogix that they thought they deserved from the market/BP. So the natural thing to do is to go "lock-up" more and more of the value created by Resevelogix into a separate private entity, Zenith, which can continue to loot at will Resverlogix through regularly scheduled or completely discretionary skewings of the RPS in Zenith's favor, as inconspicuously as possble of course.
They kinda failed on that last part. This is what we get from Resverlogix management as justification for amending the agreement. A one-time savings of $2M by giving away to Zenith a perpetual annuity of probably hundreds of millions of dollar per year, yes hundreds of millions of dollars annually forever.
But rest assured as Sarah eloquently placated us Resverlogix only shareholders "Further, in the event of any future potential M&A transaction involving Zenith, this amended agreement will hold value for Zenith as the royalty holder.....
Next scheduled amendment will surely target a higher royalty percentage and they will come up with some other complete non-sense to justify it.
IMO,
RVX Bagholder
