Skinning HBM shareholder !!!IMHO, HBM shareholders are being skinned.
HBM management on behalf of the shareholders paid CDN 135MM for 97MM shares of LUN. That's $1.40 for each LUN share.
LUN share closed at CDN $1.05 on Nov 21/08, the date the business combination was announced.
LUN shares were headed down big time and LUN would have had to do an underwriting to raise cash. The underwriting would have been done at a much lower price than $1.05, possibly as low as $0.50
Why would HBM management buy 25% of LUN at a premium?? They could have waited and participated in the underwriting. They could have obtained the same 20% position at a discount of 50%-66% to the agreed price.
This is serious money.
But, the CEO and BOD did not spend their money. It is the shareholder's money. IMHO, management believed shareholders are either too stupid to know the difference OR if they do wake up, then they can be denied a vote on the matter.
How long are we going to tolerate being skinned??? I've had enough !!!
I'm supporting Jaguar and will vote to retire the CEO and BOD !!