RE:RE:RE:Questions need answers!F2022, it is amazing to me that the First Nations and Metis Fund Inc. managers or the current MRL board havent taken a deeper dive into this, as their initial $3 million investment is now worth a tiny fraction of that amount.
This 2021 financials report does not take into account the 1:5 consolidation in Sept 2023 leaving them with 258,000 common shares. At .04 cents the value of those common shares is worth just a little over $10K.
I am surprised the members of MFN are not screaming from the rooftops for a full investigation including a forensic audit for the past 13 years!
5. Investments (continued) a) On December 5, 2011, the Corporation purchased a $3,000,000, 12.0 per cent demand debenture and 100 Class G preferred shares in MRL, a wholly-owned subsidiary of the Muskowekwan First Nation for $3,000,000. The investment in MRL was subsequently used to purchase 12,940,000 shares and 6,470,000 warrants of Encanto Potash Corporation (Encanto), a publically traded corporation. The Corporation will receive payment of their debenture and interest from the sale of Encanto shares. Any excess proceeds will be shared between the Corporation and MRL, with the Corporation receiving 40.0 per cent of the excess. On January 19, 2017, MRL received 1,000,000 options to purchase common shares of Encanto. The options have a strike price of $0.14 per share and an expiration date of January 19, 2027 (“Options A”). On November 10, 2017, MRL received 9,000,000 options that have a strike price of $0.05 per share and an expiration date of November 10, 2022 (“Options B”). On November 10, 2017, MRL entered into a Call Option Agreement that provide MRL the option to purchase 6,000,000 shares of Encanto prior to November 2, 2022 at a price of $0.10 per share (“Callable Shares”). Originally, the Corporation’s investment was secured by MRL’s 12,940,000 shares and 6,470,000 common share warrants of Encanto, however the warrants expired December 9, 2016. On May 16, 2018, Encanto completed a 10 for 1 consolidation of its common shares, resulting in MRL holding 1,294,000 shares, 100,000 Options A, 900,000 Options B, and 600,000 Callable Shares of Encanto. On March 31, 2021, Encanto shares were valued at $170,520 (March 31, 2020 - $39,830), representing the fair market value of the Encanto shares, Options A and B, and Callable Shares at March 31, 2021.
FIRST NATIONS AND MTIS FUND INC. FINANCIAL STATEMENTS March 31, 2021
https://www.cicorp.sk.ca/pub/Reports/First%20Nations%20&%20Metis%20Reports/fnmf---march-31-2021-financial-statements.pdf