The Super Rich: Start from when the family business is about to go bankrupt!

Chapter 815 WPG's Proactive Sale of Equity: The Chaotic Frenzy Among the Smart Brain Shareholders! An Inside-Outside Collusion?
Jiang Yingyu has now suddenly realized the logical problem she had with her previous thinking!

Previously, he always thought about how much percentage of equity to retain, instead of considering the value of that percentage of equity.

This is because the current valuation of SmartBrain Company is too low, and its actual value is even lower!
Therefore, whether it's five percent or ten percent, the corresponding value is very low.

Given such low value, Jiang Yingyu had the illusion that the three founders of their Smart Brain company could retain a larger share of equity.

However, if we calculate based on a valuation of 10 billion, the value of their shares is too high. Is that something they can retain?
Don't be ridiculous!

Seeing his son's sudden realization, Jiang Fangyan asked with satisfaction, "Do you understand now?"

Jiang Yingyu responded affirmatively: "Understood!"

“Following this logic, since we can’t retain so many shares anyway, we can use our existing shares to our advantage and sell some of them to Wu Gengtian ahead of time,” Jiang Yingyu added.

"Furthermore, according to the previous financing agreement, whether it is us or other investors, if we want to sell our equity stake, we will announce the news at the shareholders' meeting, and other shareholders will have the right of first refusal," Jiang Yingyu added.

The so-called right of first refusal only applies when the price is the same.

If a higher bid is made at dawn, the so-called priority right becomes invalid.

“We can use this to reveal that we are selling equity, thereby making other investors nervous. After all, if the three founders are selling equity, how can other investors not panic?” Jiang Yingyu laughed after saying this.

As Jiang Yingyu said, if the three founders of Smart Brain Company are selling their shares and showing an attitude of preparing to run away, coupled with the fact that Smart Brain Company has no core patents, no research and development results, and its cash flow is almost collapsing, how can other investors sit still?

Jiang Fangyan smiled and nodded, pleased that his son understood so quickly.

"When we sell the shares, you should contact an intermediary and have them buy them first to hold them on your behalf. We need to avoid selling directly to Wu Gengtian," Jiang Fangyan reminded him.

Jiang Yingyu responded, "Okay, Dad."

"I'm entrusting you with handling the sale of shares, as well as the corresponding shareholder meeting announcements and disclosures," Jiang Fangyan added.

“No problem,” Jiang Yingyu replied confidently.

After leaving his father's office, Jiang Yingyu returned to his workstation and silently pondered his next plan.

“Hey, Jensen.” Ruan Shuting, who was working at the next workstation of Jiang Yingyu, greeted him.

Jiang Yingyu looked in the direction of the voice, "What is it?"

"What do you think of the messages in the company's group chat before?" Ruan Shuting asked.

“Of course I support my dad’s decision,” Jiang Yingyu replied without changing his expression, even though his previous statements in the group chat had been contradicted.

"Then what do you think I should do?" Ruan Shuting asked again.

Ruan Shuting has only been with Smart Brain Company for less than a year. He is 28 years old this year, making him a very young doctoral student.

Given that Jiang Yingyu and Ruan Shuting are close in age, they often hang out together, such as drinking together, and can be considered friends.

Ruan Shuting is playing the emotional card in hopes of obtaining some inside information.

Unfortunately, Jiang Yingyu is no fool, especially since he and Jiang Fangyan had just analyzed the future value of the Smart Brain Company, so he was even less likely to reveal the inside story easily.

So, Jiang Yingyu sighed and said, "The company is indeed facing some trouble right now. If you have a better option, then choose wisely. That's all I have to say!"

Ruan Shuting nodded slightly, feeling that he had understood Jiang Yingyu's implication.

"Thank you, Jensen. How about we grab a drink tonight?" Ruan Shuting extended an insincere invitation.

Jiang Yingyu declined, saying, "No, I have company matters to attend to later."

After Jiang Yingyu finished his conversation with Ruan Shuting, he had already prepared his remarks in his mind, so he opened the Smart Brain Company shareholder group on his phone.

Jiang Yingyu: @Everyone: Hello to all investors of Smart Brain Company!

Jiang Yingyu: As stipulated in the financing agreement, we announced at the shareholders' meeting that the three founders of Smart Brain will gradually reduce their holdings of Smart Brain's equity, and we are now officially selling these shares to the public.

Jiang Yingyu: Among them, @Jiang Fangyan will sell up to 8% of the shares; @Huang Yuan and @Jin Minquan will each sell up to 7% of the shares.

According to this plan to sell shares, Jiang Fangyan's remaining shares will decrease to two percent, while Huang Yuan and Jin Minquan's shareholdings will decrease to one percent.

Zhou Haiyi: ? ? ?

Zhou Haiyi: What do you mean by this?

Zhou Haiyi: Are you doing this to abandon SmartBrain Company?

Guo Zhongyang of BEA East Asia Bank was checking the information in the shareholder group of Smart Brain Company when he suddenly found Smart Brain Company to be quite interesting.

Previously, SmartBrain Company kept releasing bad news, and he originally thought that SmartBrain Company was up to some kind of trick to try to buy back the shares.

After he secretly investigated SmartBrain Company, he discovered that the company was indeed in dire straits, and now the three founders of SmartBrain Company had collectively sold their shares.

This is not a good sign!

Yuan Junxiong: What exactly is your AI-powered system planning to do?

Yuan Junxiong: Will the three founders collectively withdraw?

'Yuan Junxiong: Trying to find a sucker before quitting?'

Yuan Junxiong: Although my surname is Yuan, I'm not a sucker!

Yuan Junxiong participated in two rounds of financing for SmartBrain, investing a total of HK$680 million and acquiring a 2.8% stake.

Du Yan: How much are you planning to sell your shares for?

Like Zhou Haiyi, Du Yan also participated in three rounds of financing for Smart Brain Company, investing a total of HK$840 million to acquire a 3.2% stake.

Shi Wenxiang: @Jiang Fangyan: @Huang Yuan: @Jin Minquan: Do you think you've done right by your investors?

Shi Wenxiang also participated in the three rounds of financing for Smart Brain, but he entered the market later. So, with an investment of HK$1200 million, he only received 3% of the equity.

However, Shi Wenxiang's investment price was still better than Guo Zhongyang's investment in BEA East Asia Bank, because Guo Zhongyang only invested HK$2600 million for a 6% stake.

Jiang Yingyu: Our company's valuation in its last round of financing was HK$4.33 million, but given the various troubles and difficulties the company is currently facing, we have lowered the valuation to HK$300 million.

Jiang Yingyu: If any investors are interested in our shares, please contact us to discuss the purchase.

Faced with Jiang Yingyu's offer of HK$300 million as a valuation, it means that each 1% of the equity would require HK$3 million.

After this offer was made, the shareholder group of SmartBrain Company immediately erupted with various forms of ridicule.

Du Yan: Given the current state of SmartBrain, you actually want a valuation of HK$300 million?

Shi Wenxiang: Smart Brain? Dried Walnuts!

Shi Wenxiang: I'm selling my 3% stake for a valuation of 200 million. Everyone is welcome to buy! Yuan Junxiong: I'll be the sucker!

Yuan Junxiong: My 2.8% stake will be sold at a valuation of HK$1.5 million.

Zhou Haiyi: What are you doing?

Zhou Haiyi: Why did you lower the price yourselves?

Yuan Junxiong: @Zhou Haiyi: Mr. Zhou, if you want to buy it, I can give you an even bigger discount.

Yuan Junxiong: If we calculate based on a valuation of HK$1.5 million, my 2.8% stake is worth HK$420 million. I'll round it down for you, so it'll only be four million!

Yuan Junxiong's idea was simple: if he could sell it for four million, he would have recovered four million, and only lost 280 million Hong Kong dollars.

He can accept this loss!
After all, it's normal to make and lose money when investing. What he's worried about is that the Smart Brain company will go bankrupt and be liquidated, ultimately leaving him with nothing from his investment.

Zhou Haiyi: I'm not buying!

Seeing that everyone in the shareholder group expressed their intention to sell their shares, Guo Zhongyang did not join in the commotion. He was waiting for the actions of the three founders of Smart Brain Company.

Will the three founders of SmartBrain choose to sell their shares or take the opportunity to acquire more?

In fact, Guo Zhongyang was well aware that the investors in the current shareholder group were just following along; they did not actually intend to sell their shares directly, but were simply observing the situation.

After all, they said they were selling shares in the group chat, but no contract was signed. It wouldn't be a problem if they suddenly canceled the sale, right?
After Jiang Fangyan's earlier reminder, Jiang Yingyu no longer underestimated these investors, and of course he could not express his intention to acquire the equity in the group.

Jiang Yingyu: Since the investors are not buying our shares, we are prepared to sell our shares to external parties.

Jiang Yingyu: According to the financing agreement, after we negotiate and determine the final price with external parties, we will notify all shareholders of the corresponding offer, since everyone has the right of first refusal.

After sending the message, Jiang Yingyu stopped paying attention to the messages in the shareholder group, because the authenticity of other people's messages was uncertain, and most of them were just testing the waters.

Jiang Yingyu put down his phone, tidied up his desk, and got up to leave. He needed to contact Yang Jing, but he couldn't do so within the Smart Brain Company.

After all, within the Smart Brain Company, it's now commonplace for everyone to have their ears heard!
Jiang Yingyu arrived at the underground parking garage. His car was a BMW 3 Series sedan. After getting into the driver's seat, Jiang Yingyu first put on a Bluetooth headset, then connected with Yang Jing via voice through the Xiaobaige app, and then started the car and drove away.

The white BMW 3 Series sedan left the underground parking garage and then drifted aimlessly into the flow of traffic.

The Xia Kingdom, Guizhou.

Your Business School.

Yang Jing was studying here when he received a voice call from Jiang Yingyu. He left the classroom and then put on his headphones to answer the call.

"Brother Yang, is it convenient for us to talk now?" Jiang Yingyu asked.

Yang Jing responded, "Wait a moment, I'll go to the car."

"Okay," Jiang Yingyu replied.

The two began chatting about romantic things. A few minutes later, Yang Jing arrived at the open-air parking lot on campus. After getting into his BMW M3 Competition, he started the car and left the school.

Once they merged onto the main road, Yang Jingcai said, "President Jiang, it's convenient for us to talk now. What's the situation on your end?"

"I have two things to attend to," Jiang Yingyu explained.

"First, there's the issue of share buybacks. I've run into a little trouble and need your help to resolve it," Jiang Yingyu added.

In Jiang Yingyu's view, Yang Jing naturally needed to help them when they encountered trouble.

After all, Yang Jing needs to get a kickback!

"Tell me exactly what troubles you." Yang Jingke didn't intend to agree first, at least not to Jiang Yingyu.

If An Wuyang asks Yang Jing for help, Yang Jing will agree first.

Tailoring your approach to different people—isn't that a basic skill?

In fact, this basic skill seems to be something that most people naturally possess, right?

Jiang Yingyu quickly explained the specific situation, which can be summarized as follows: Yang Jing was to replace Wu Gengtian and first acquire a portion of the shares from the three founders of the Smart Brain Company for nominee shareholding.

Yang Jing understood immediately and readily agreed, saying, "No problem!"

It just so happens that Yang Jing, under An Wuyang's guidance, registered a shell company called "Jingxin Pharmaceutical Sales Company" in order to resell Wugengtian's medicines. He could use the name of Jingxin Pharmaceutical Sales Company to acquire a portion of the equity of Zhihui Brain Company.

As for funding, of course he would ask his godfather, An Wuyang, for a solution.

"What price do you think would be suitable for us?" Yang Jing asked.

Jiang Yingyu hesitated slightly.

This quote is very well thought out!

If the offer is too low, the original investors may have the right of first refusal and try to intervene.

As for the price being too high
That might backfire!

“We’ll start with a bid of HK$100 million. I’ll share this bid with our shareholders’ group. If someone takes over, you can raise your bid,” Jiang Yingyu explained.

This is a quote, not the final confirmed price!

Therefore, there is no situation where a price quote guarantees a transaction.

“Okay!” Yang Jing replied.

"Don't give me a quote yet. I still need to put on a show on Hongkang Island. Also, our AI's Number Two can't pay its employees, which will be another heavy blow. Let's wait for Number Two before we talk," Jiang Yingyu explained.

"No problem," Yang Jing readily agreed.

"I need to discuss this matter with Wugengtian," Yang Jing stated frankly.

Jiang Yingyu replied affirmatively, "I was just about to talk about this. Our matter still requires the cooperation of Wugengtian, so you will indeed need to contact President An of Wugengtian later."

“Okay!” Yang Jing replied.

Yang Jing can distinguish between the big and small kings!

Yang Jing knew very well that his friendship with An Wuyang should be the top priority, and everything else had to take a backseat.

This time, Jiang Yingyu contacted him to cooperate, so Yang Jing naturally had to give An Wuyang a detailed report so that An Wuyang could understand the specific situation.

Ultimately, no matter how much the SmartBrain Company schemes or struggles, if it wants to generate value, it inevitably needs a final push before dawn.
Sigrún has taught at the Iceland University of the Arts as a part-time lecturer since and was Dean of the Department of Fine Art from -. In – she held a research position at Reykjavík Art Museum focusing on the role of women in Icelandic art. She studied fine art at the Icelandic College of Arts and Crafts and at Pratt Institute, New York, and holds BA and MA degrees in art history and philosophy from the University of Iceland. Sigrún lives and works in Iceland.

An Wuyang: "Damn Trident, are you trying to ruin Wugengtian? We are clearly the company with the highest layoff compensation, how come you raised the compensation standard by almost double?"

(End of this chapter)