RE:RE:RE:RE:More Than, Just A Hole In The Ground?Petersburggray, the value of the proposed roll back of Abcourt's shares, 7 to 1, might seem disappointing to some today. But if a wealthier class of shareholders can be attracted to Abcourt Mines, the new entity, then a 45 cent stock could move substantially higher than the dollar per share price that many present day shareholders, might have been, someday expecting. A proportional gain still represents, much the same amount of return.
The press release mentioned that Abcourt will be pursuing that type of shareholder in the future. That is what a roll back, besides combining synergistic entities, may well, also help to accomplish.
"...[seeking] Larger capital markets profile [that] will better position the combined company to attract new institutional and high net worth retail investors.
https://abcourt.ca/en/news/abcourt-annonce-une-lettre-dintention-non-contraignante-pour-lacquisition-de-pershimex/
The last major sell off of Abcourt shares drove the share price back down to today's extreme low valuation. Some may argue that the company deserved this lack of respect due to its history of inconsistent performance. Or perhaps it was obvious that the shares were highly overvalued from an earnings perspective. It was clear that the 'valuable properties' that Abcourt held could not prevent the downward spiral that the shares underwent.
So one may conclude that even though a company may hold mining assets of some significant value, they may never realize their full potential, if the drawing card is not there to attract.
Majority shareholders also, would logically not choose to give away their valuable assets 'for a song', so to speak.
Many exploration companies, patiently wait, while they work and continue to dilute, hoping some major miner might choose to buy them. Their shareholders also sit, watching and waiting, as well, wondering where else, their valuable dollars could have been spent.
But in the end, sometimes it takes a successful junior mining operation to fully monetize an operation by actually successfully mining it, to convince others to buy!
Abcourt wants to be both an explorer and a miner. Perhaps the best drawing card, for the real dollars that we as shareholders, continue to seek is a successful mining operation that produces consistent and predictable results.
It sometimes takes time for buyers of all persuations, to become fully convinced!
And even harder, it may prove difficult for some skeptical shareholders to maintain their position, when the company might be sold or perform better, at some future but uncertain date.
As always, it seems better to take an immediate profit than accept the possibility of any potential loss down some, uncertain road, but possibly, lying just ahead.
From that perspective, it might prove difficult in the short term, for Abcourt to keep its new shareholders from Pershimex from selling.
They have waited a long time, sitting with their 'dead money', waiting to bury it!
Once, it seemed like, such a buy! But, the company couldn't monetize its assets.
But now they can!
The new combined entity has a lot of work to do to convince all of its present day audience that it will honorably, comply with the terms of its mandate, to realize the full value of all the company's assets.
This is going to cost a bundle. Where will the money come from? As Renaud Hinse has been quoted as saying, "it's one step at a time!"
The Sleeping Giant Mine is just the start! Later, more will come. This is the drawing card!
A true mensch cannot accept praise. But a successfully run company, can be given approval, once all shareholders, have become, fully convinced of their company's success!
May that day come and soon!
All the best! Java