Karnalyte Resources Inc T.KRN

Agree 100% HM

[mdjbrown]

but the problem being, why would regulators force GSFC to do anything if this Rights Offering essentially giving the corporation away to GSFC was approved by the regulatory authorities.

According to the company, the Rights Offering was the corporations idea, and GSFC agreed to participate in it, including purchasing any shares left on the table. Thats exactly what they did.

GSFC and the directors at that time were the direct benefactors, so if it was all done above board how could the authorities force GSFC to liquidate their position.

The only way that would happen is if GSFC didnt actually pay for the shares, but it was stated by the company at the AGM that those shares were paid for in full by GSFC.

Would that not also make a statement that the TSX, OSC dropped the ball for not following up after receiving so many complaints?

The legal costs to fight it would drain the remaining treasury, and by default GSFC would retain the asset through creditor protection as the corporations largest shareholder.

I 100% agree creative solutions are required, but those solutions have to be realistic as well, and cant be realized without someone above admitting they dropped the ball or pulled a fast one.

[HermanMonster]

if GSFC didn't pay for their shares, which I find hard to believe with Auditors combing through every quarter, the CFO at the time would be the only one that could have pulled this off. I don't believe form my limited experience that anyone could pull this off, but I don't know everything. I will never make a claim that I know everything, cause I don’t. .

[HermanMonster]

Why would regulators do anything? It is not about rights offering. You can own 38% of a company, you can obey the laws of the land, you don’t need to oppress shareholders by stacking the board with more then 50% director influenced by your company. You can own 38% of a company and be a good corporate citizen and play by the rules If you can’t control yourself and look out for the best

[mdjbrown]

HM, the second the 4 non GSFC directors signed off on the Rights Offering, Krns fate was sealed, which begs the question, why. Directors Matson, Rowan, Zachanowich, and Szabo were all very aware of GSFC's reputation prior to May 2017 when they were elected. So what made them change their mind? Going into the 2017 election, all of these guys agreed that GSFC had 1 year to prove they were

[AriW16o]

why the regulators did not put on hold the rights offering last time when they received complaint report from the lawyer and shareholders?  if only they did their job, then all this would not happen... To Mr and Mrs Regulator / FCAA / ASC, if you read this, please don't close your eyes and ears this time! Investigate now please... As for those guys who begging our support, you may have

[mdjbrown]

Sadly Ari, if the 2017 / 18 directors who now make up the csg would have kept their word, this would not be an issue today.   It was crystal clear when these guys were elected in May 2017, that GSFC had until the next AGM to make something happen. If not, they all agreed there would not be a second chance. Transperency, improved shareholder communication, and finally moving the Wynyard