Metaplanet's independent directors have reaffirmed their support for the controversial tenth series of stock acquisition rights, amidst significant shareholder discontent regarding potential dilution. This plan has come under scrutiny following a 41% reduction that eliminated over $220 million in potential warrant value.
In a letter issued on September 29, the directors explained that management financed these rights using personal funds during a challenging financial period for the company, which has transitioned from a struggling hotel operator to a restructured entity. They argued this investment reflects management's commitment to revitalizing Metaplanet, despite none of the current independent directors being in place when the rights were originally issued.
The directors emphasized the importance of viewing these rights as a long-term incentive for restructuring rather than as a conventional compensation plan, highlighting that management's cash compensation remains modest compared to industry standards. They further noted that shareholders had approved the initial terms of the rights in February 2023, with over 98% of voting rights in favor, which translates to approximately 78.3% when excluding the then-majority shareholder, EVO.
