OTCQX:GXOCF - Post by User
Post by
HIT2020on Feb 01, 2020 9:25pm
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Post# 30630078
Pennies on the dollar
Pennies on the dollarIs this an entity not created for building wealth throught exploration, production and sale of energy?
Jan. 20, 2020 (GLOBE NEWSWIRE) "The Board of Directors of Granite has also unanimously approved the Arrangement, and recommends that Granite shareholders vote in favour of the Arrangement at the meeting of Granite shareholders expected to be held in early March 2020. All of the directors and officers of Granite as well as entities related to GMT Capital Corp., Granite’s largest shareholder, together representing approximately 25% of the total Granite Shares, have entered into agreements with IPC pursuant to which they have agreed to vote their Granite Shares in favour of the Acquisition."
Board Recommend selling at pennies on the dollar (based on initial placements), why? Has the demand for oil taken a sudden decline? Have BC and Quebec stopped importing it? I haven't seen and heard either have happened as of late.
So why should the other 75% of Granite shareholders vote in favor of selling a valuable asset (regardless of the deep discounted market price as of late) at a deep discount to not so recently past valuations? Other than it appears the Board and Management have decided it is what is best for our investment.
The board was unanimous in support with a publicised support of 25% of shareholders, can someone explain why this board position ought to be acceptable for all/vast majority shareholders?
7 years ago - Bakken https://www.fa-mag.com/news/hunt-becomes-billionaire-on-oil-after-silver-bankruptcy-13783.html?section=75
What was wrong with Granite continuing to pay down the debt and possibly buy back some shares to help if some owners wanted to get their investment back out sooner than later?
Is Granite in need of fresh management/board?
How much of the 25% spoken about above was a result of the board approved private placement which saw all prior shareholder ownership diluted by about 10% while GMT and some Mgmt/Board picked up the ownership interest at $.52/Share? It appears to me to be about 6.5% of the 25%.
IMO