Arcan Resources Ltd ARNBF

RE:RE:RE:RE:RE:Why Did they Consult No One ?

[seriousinvest]

The problem with this transaction from the standpoint of the shareholders IMO is that it's hard to see how Muira makes any money.  As far as I  can tell so far management has refused to tell anyone how much the 3 no doubt over paid executives are going to be paid and the amount of  operating income it would have based on the current run rate.  I suspect that number is very small (and maybe not even positive).  I noticed that it was one of the most important questions that management did not answer in their attempt to drum up support for the transaction. Neither of the 2 laregest shareholders have indicated they are going to support the deal (one has specifically said it would not and the silence from the other certainly implies a no vote).  They must be aware of the company's situation and they have a lot riding on the outcome.  If they are not supporting it then it is hard to see why any other shareholder should.

BTW it is interesting to note that the debentures have not fallen while the common continues to decline.  Some were predicting that a no vote would cause the debentures to plummet but that has happened. It seems very likely that not only will the debenture holders not support the transaction but it is very unlikely that the transaction will even receive the necessary shareholder approval.