Black technology: a super empire spanning two worlds

Chapter 8 [A series of traps]

"The investor has set you up? Why are you so careless?" Wen Suqing's eyes flashed with surprise.

"The world is a dangerous place. If you step on a landmine when you are young and inexperienced, just consider it as paying tuition." Xiao Yu said in a very free and easy manner. The biggest reason for this is that he now knows how great an advantage he has and he has enough confidence to support himself, so he is naturally calm and composed.

Wen Suqing also finished breakfast and immediately asked, "What exactly is going on?"

Xiao Yu glanced at the materials on the table: "They are all here, you will know after you take a look."

Wen Suqing had noticed the materials on the table long ago. He picked up one of the documents but did not open it immediately. Instead, he looked up at Xiao Yu and said, "So I really read it?"

Hearing this, Xiao Yu smiled and said, "I trust you."

Putting aside other things, even if they were not classmates, any law firm would have accepted Xiao Yu's promise of a guaranteed salary of 3000 million plus an additional 3.5 million without hesitation.

From a profit perspective, there would be no benefit for her in leaking the situation.

Wen Suqing opened the document and read it.

Seven years ago, Penghui Capital invested RMB 3 million in a 19.99% stake in Prism Technology. At that time, the company was valued at around RMB 15 billion, and it also had to pay interest. The RMB 3 million at that time would now be worth RMB 6 million including principal and interest.

As an investor, what you most want to see is that the company can go public. Only by going public can you maximize the benefits of your investment.

Therefore, a bet clause was agreed upon, requiring Prism Technology to be successfully listed within five years, and the company's market value to reach 265 billion within three years after the listing.

Penghui Capital is not betting against Prism Technology as a corporate entity, but rather against its major shareholder and actual controller Xiao Yu. Therefore, the 6 million yuan will need to be paid by Xiao Yu instead of the company. Xiao Yu certainly cannot come up with such an astronomical figure of 6 million yuan now.

Unless Xiao Yu reduces his holdings in Prism Technology to cash out, the current share price of Prism Technology has hit a record low, falling to 3.97 yuan per share, corresponding to a market value of 34.46 billion yuan. Xiao Yu is the company's major shareholder and actual controller, holding 3 million shares, accounting for 34.56% of the company's total share capital.

This shareholding ratio is the life and death line of corporate control. As long as the shareholding exceeds 34%, it is equivalent to having a veto power in the company, because major issues require a 67% majority to vote on. Xiao Yu holds a 34.56% equity ratio, which means that as long as he opposes, the vote will never pass.

According to Prism Technology's current market value of 34.46 billion, Xiao Yu's entire equity corresponds to a market value of 11.9 billion. Cashing out 6 million is equivalent to selling 17.4% of the equity, which is a direct reduction of more than half, and he will lose control of the company.

Moreover, once such a large-scale reduction in holdings is announced, even if half of the shares are sold, it will definitely not be possible to get 6 million yuan, because once the reduction announcement comes out, the company's stock price will definitely be further smashed, and it is not impossible to be cut in half again. By then, all the shares in Xiao Yu's hands may not be worth 6 million yuan, which is equivalent to being wiped out and kicked out.

Xiao Yu was not a complete novice back then. He was still concerned about the issue of control. In addition to holding more than 34% of the shares, he also signed a joint action agreement with several major shareholders such as Penghui Capital as an additional layer of insurance.

With a concerted action agreement, even if the equity ratio is below 34%, they still have absolute control over the company, because when Xiao Yu votes, the shareholders who have signed a concerted action agreement with him must follow him in voting unconditionally. If Xiao Yu votes in favor, they must vote in favor, and vice versa.

At that time, Xiao Yu believed that with double insurance, there would be no problem with the control of Prism Technology, but it was this unanimous action agreement that laid the groundwork for what would happen later.

Penghui Capital led several capitals to agree to sign, but Xiao Yu also had to sign a bet clause. After Xiao Yu read it, a priority repurchase right clause was added. After some tug-of-war, they finally signed the bet clause.

The hidden danger is the right of first refusal agreement, and it is this right of first refusal agreement that is so fatal.

Wen Suqing couldn't help but frowned and said solemnly: "You have fallen into a chain trap of capital, one ring after another..." If the market value of Prism Technology has not reached 265 billion by the end of the deadline, Penghui Capital can require Xiao Yu to pay 6 million including principal and interest. At the same time, Penghui Capital can trigger the right of first sale clause, that is, when Penghui Capital sells his 19.99% equity to others, Xiao Yu must also sell his equity with him.

This is the so-called right of first sale clause, which means leading Xiao Yu to sell together. The reason why Penghui Capital does this is that it has another priority liquidation right clause, which means that after Xiao Yu sells his shares and realizes the cash, he must first repay the 6 million yuan he owes to Penghui Capital.

Since it was a set up trap, Penghui Capital must have sold its equity at a discounted price when selling it to others, and the buyer must have been an institution secretly held by Penghui Capital.

Only by selling the equity at a discount can Xiao Yu's 34.56% equity be sold at a value far lower than 6 million yuan. The cash realized will definitely be below 6 million yuan, which will trigger the priority liquidation clause. This money will be used to repay Penghui Capital first, and it is very likely that it will continue to owe another million or million yuan.

It can be said that they took everything and kicked the founder Xiao Yu out of the company, and all the houses and villas under his name were auctioned off.

Wen Suqing put down the materials and sighed. He looked at Xiao Yu and said helplessly, "I'm sorry, Xiao Yu, I can't do anything. This is a dead end and there is no way to break it. No matter what, Penghui Capital is invincible. If you complete the bet agreement, he can make a lot of money. If you fail the bet, he can still make money and you will be out."

Wen Suqing also did not intend to ask for the guaranteed salary of 3000 million from him. After knowing Xiao Yu's situation, which might have left him with nothing, she could not bring herself to ask for 3000 million from him.

"What's that look in your eyes? It's as if I've lost everything." Xiao Yu smiled calmly. Seeing him like this, Wen Suqing couldn't help but said, "How can you still laugh? If you fall into such a trap, you may become poor overnight and lose everything."

Xiao Yu smiled as usual, and said calmly: "What if I can fulfill the terms of the gambling agreement and make the company's market value soar to more than 265 billion within the deadline?"

Wen Suqing was stunned: "Hag?"

Xiao Yu continued, "I didn't see the trap Penghui Capital set for me before, but now I understand it even without you telling me. But this is not the point, nor is it the purpose of asking you to come here to give me advice."

After a pause, Xiao Yu added: "I invited you here because if I can raise the company's market value to 265 billion to complete the gambling agreement, how can I make Penghui Capital and other investors who set up the trap for me get out of the game with bloodshed? I don't want the stock price to soar so that they can cash out at a high price and make a lot of money. What I want is for them to leave with a huge loss."

Wen Suqing looked at him in surprise: "Can you really raise the company's market value to 265 billion to complete the bet agreement? When I came here, I also looked at your company's stock price. The current market value is less than 35 billion. It has to increase by six or seven times. There is only about half a year left. How is this possible?"

Xiao Yu said succinctly: "Of course I can!"

Wen Suqing hesitated to speak after hearing this. Although Xiao Yu spoke with such confidence, she was still very skeptical.

Xiao Yu thought about it and decided to reveal some information to her, so he said with some reservation: "I have developed a revolutionary new material. It will be worth hundreds of billions in the future. As long as the news is exposed and confirmed, investors in the secondary market will definitely buy it. It will be easy to realize a market value of 265 billion in the short term."

Hearing this, Wen Suqing flashed a look of surprise: "Are you sure?"

Xiao Yu nodded: "I'm sure! You don't need to worry about anything else. Just follow my instructions and I will definitely achieve the target market value. Based on this, can you satisfy my demands and design a plan to make several investors lose money and leave?"

Seeing Xiao Yu's certainty, Wen Suqing thought for a moment and then said clearly: "If you can really complete the gambling agreement, with this premise, and make the investors lose a lot of money, then I can provide a feasible plan to achieve a big turnaround against the wind."

……

(End of this chapter)