Chapter 1139 Equity Dilution

At nine o'clock in the morning, Alan drove to the office of Creator Networks which was located downtown with the help of GPS. As Alan enjoyed high prestige and status within the industry, he rarely took the initiative to visit potential partners himself. Usually, he made his staff do that kind of work.

Meanwhile, Eric and his two colleagues treated their meeting with Alan very seriously. In order to be on time for this appointment, all three of them got up very early in the morning. They were so busy with work that they clocked out very late at night every day. Normally, they wouldn't get up until about 11 o'clock.

For the sake of this important meeting, Eric especially got himself dressed up in a new blue shirt, looking very energetic.

When Eric and his team members finally met Alan, all three of them greeted Alan and introduced themselves to him. Looking around, Alan asked in astonishment, "Well, I know that Charles is the majority shareholder of your company. Hasn't he come?"

Eric was annoyed that Alan had mentioned Charles, but he kept his temper and still replied in a calm voice, "Sir, I want to confirm with you about one thing. The truth is, the three of us are the founders of Creator Networks. Charles is merely one of our angel investors."

Eric's words dazed Alan, who responded soon enough with a smile, "Oh, I've got it. I am sorry for this. Your company has been developing very fast. I should have done a background research on your company before coming here."

As a matter of fact, Alan clearly knew about the organizational structure of Creator Networks. But in order to not embarrass Eric, he pretended to have no idea about the company's organizational structure.

Although Eric was still angry that Alan had mentioned Charles as soon as they met, Eric still acted composed. With a feigned smile, he responded, "That's okay. Actually, many people don't know about the organizational structure of our company. Like you, they misunderstand that Charles is our company's founder."

Previously, Alan had been a journalist. At the peak of his career, he had even exposed on media that an important politician of the United States of America had an illegitimate son. His experiences as a journalist gave him the capability to easily read other people's minds.

Judging by Eric's words, gestures and expressions, Alan had guessed what Eric was really thinking. Thus, he immediately realized that the impression he made on Eric wasn't quite good.

Just to stay on the safe side, Alan didn't tell Eric what he was thinking about the company. Eric gave Alan a tour of the office. After showing Alan the rooms located on the first and second floor, Eric showed him the latest websites and mobile applications that Creator Networks was developing. Throughout the tour, Alan had been pleas

as no management right. He has delegated the management right of his shares to us."

After finishing his words, Eric threw a glance at Alan again, who still wore a smile on his face. After some more thinking, he continued, "Sir, we all know that the internet industry requires considerable investments. We hope that your company could invest 15 million dollars in our company, and in return, we will transfer 20% of our shares to you!"

Alan smiled at Eric's condition before he replied, "Just now, you said that the three of you own 60% shares of your company, while the remained 40% shares are held by Charles. Now, I want to know, will the 60% shares of you three be diluted alone or together with Charles's shares?"

Without any hesitation, Eric responded in a resolute tone, "Of course, all of our shares will be diluted based on our shareholding ratio!"

Alan stared at Eric for a moment before he asked, "Can you show me the share investment agreement that you have signed with Charles? I would like to know about the specific stipulations of the agreement. As you see, not all of your shareholders are present in this meeting. Prior to my investment decision, I have to make myself clear about what rights you enjoy over the shares you hold."

Alan's request was quite reasonable, as it would be made by every organization who regularly engaged in risky investments. Therefore, Eric agreed to Alan's request without hesitation.

He handed Alan a copy of the share investment agreement right away. Alan thanked Eric and started leafing through the agreement carefully from beginning to end. After reading the agreement, he took his glasses off, rubbed the bridge of his nose and stated, "Eric, I am so sorry. Without Charles's authorization, you will have no choice but to have the shares of you three diluted even if Sequoia Capital agrees to invest in your company."