China ... playing on the TSX.VHey Lou ... I hope Frank is wiser than some CEO's with mineral mining companies on the TSX Venture Exchange.
From history, as I remember it, here is a vivid example (and this is where I learned "why" the Toronto Venture Exchange was set up - in the first place).
Anyone here familar with Liberty Mines Inc. (LBE)?
A few years back they needed cash immediately to pay off debts. Their CEO made a quick trip -
to China.
He got all the short term cash he needed all right but he gave away the mine in doing so. There were several items he had to agree to to get the blank check.
As I remember it, here are a few of the of the rules of this game.
China would honor and live by the rules and regulations of the Toronto Venture Exchange.
They would immediately get 2 (or 3) Seats on the BOD of LBE.
They would get 50 (or 51)% of the shares in the company.
If LBE needed more money China would have first rights of refusal to loan this money to LBE. Then, the loan would not be paid-off in "money" but payments would go to China in shares of stock.
Then, if I remember correctly, the interest would be paid back on a monthly basis and also
could be paid in stock shares.
Now, who had who by the "cold brass balls"?
I would venture (pun intended) to say that there were some well paid slick Sailors standing by watching everything that was going on.
It wasn't very long before China owned 70 (+/-) percent of the stock. They were in control of the BOD, Finances, and "out went the old Canadian CEO".
Who own's LBE now?
Remember, all this was done with not a whisper from the Canadian Government nor the manager/owners of the Venture Exchange. All very legal. (Yes, some stockholders voiced their
discontent on these BullBoards and tried to get the ship righted. But, to no avail.)
Then, to continue, once the SP was low enought for the new management, here came a private placement (you know, the old friends helping friend out?). And then, low and behold, a 50 : 1 reverse share split showed up. Up, went the SP. Everybody was happy. The "insiders" now have long ago sold their shares. And presently, the price is rapidly shrinking back down toward the old market prices. Is anyone happy now (besides the perpetuators of the TSX-V)?
Does this unpublished "business plan" now start to sound familar to any of you?
Do you think that China give a "rat's behind" about any of this? My name is not Thomas. So, don't get me confused with the Thomas of old. But, I doubt if China cares much about anything except maybe China (and then as The Capital of the Communistic World).
westernkid