https://www.sec.gov/Archives/edgar/data/1088413/000149315219013488/form10-k.htm
So I have exactly zero clue as to what is and isn't allowed when it comes to related party transactions. This is an OTC company so more or less anything goes and no I haven't made an investment in them. I've made no decision on that so far. What related party transactions are and aren't allowed? As an investor what should you be okay with and not okay with?
p.22: "Greystone has determined that Messrs. LeBarre and Rosene are “independent” within the meaning of Rule 5605(a)(2) of the NASDAQ listing standards. Because of the small size of Greystone’s Board of Directors, it has not established any committees. Rather, the entire Board acts as, and performs the same functions as, the audit committee, compensation committee and nominating committee. Mr. Kruger is not considered “independent” within the meaning of Rule 5605(a)(2) of the NASDAQ listing standards."
F-15: "Yorktown Management & Financial Services, LLC (“Yorktown”), an entity wholly owned by Greystone’s CEO and President, owns and rents to Greystone (1) grinding equipment used to grind raw materials for Greystone’s pallet production and (2) extruders for pelletizing recycled plastic into pellets for resale and for use as raw material for manufacturing pallets. Greystone compensates Yorktown for the use of equipment as discussed below."
F-19: "GRE, is owned by Warren Kruger, President and CEO, and Robert Rosene, a member of the Board of Directors. GRE was created solely to own and lease buildings that GSM occupies in Bettendorf, Iowa."
They're in a simple industry. They make pallets. That's it. But these related party transactions make me itch pretty badly because I don't know what I should and shouldn't be okay with as an investor.
Submitted August 23, 2020 at 08:49PM by howtoreadspaghetti https://ift.tt/2QkFkDy
