RE:Kermode to roll back shares 1:10 Oct. 6 What did it take, three trading days to chop the market valuation of this company in half, thanks to the work of Peter "Dilution" Bell.
How many deals has this guy done by using shares as payment for everything from LOI to payment for debt to salaries.
Here is a list of cancelled LOIs:
- Rye Patch Silver, Nevada (Started December 2021; ended August, 2022)
- Brazeau Rumleski Gold, Ontario (Started April 2022; ended August, 2022)
- Khrysos Gold, BC (Started March 2022; ended August, 2022)
- Seahorse Saddle, Australia (Started February 2022; ended February 2022)
- Marchand Creek, BC (Started September 2022; ended March 2023)
- Mt Polley East, BC (Started November 2022; ended March 2023)
- Black Bear (Started August 2022; ended March 2023)
- Copper King (Started August 2022; ended March 2023)
What did shareholders get out of any of those deals?
Nothing, except more dilution.
When the group led by "Dilution" Bell led a board overthrow at the AGM on August 10, 2021, there were 90,497,373 shares outstanding as per the July 31, 2021 financial statements.
In February 2022, Kermode closed a non-brokered private placement at $0.025 for each unit (consisting of one share + one non-transferable common share warrant). There were 9,652,600 units issued
At the time the consolidation was announced on September 25,2023 there were a stated 215,534,582 shares outstanding.
Let's put this into simple terms, during the 25 months Dilution Bell has been at the helm, the share count increased by 138% with an increase of 125,037,209 shares (of which only the company only received hard currency for a total of 9,652,600 shares).
That works out to about 4,615,384 shares issued EVERY SINGLE MONTH without receiving a single penny of cash in exchange - as the 9,652,600 are not part of the calculation.
Then today, the company announced another monthly handout of more post-consolidation shares as shares for services:
- 391,732 shares to 911 Exploration;
- 88,406 shares to Aurum Vena Mineral Resources;
- 100,000 shares to Peter "Dilution" Bell;
- 100,000 shares to Andrew Low (aka Zhizhen Liu)
That is equvalent to 6,801,380 pre-consolidation shares. It is only getting worse.
Give it aother year or two and we will be back to $0.005 with another bloated share count and more grifters sucking at the lifestyle company teat with nothing to show for it.
mrsgoldminer wrote: Kermode to roll back shares 1:10 Oct. 6
Kermode Resources Ltd (C:KLM)
Shares Issued 240,129,491
Last Close 9/29/2023 .005
Tuesday October 3 2023 - News Release
Mr. Peter Bell reports
KERMODE ANNOUNCES EFFECTIVE DATE FOR 10:1 SHARE CONSOLIDATION
The effective date is on or about Oct. 6, 2023, for the consolidation of Kermode Resources Ltd.'s shares on the basis of one postconsolidation common share for every 10 preconsolidation common shares, as previously announced Sept. 25, 2023.
Currently, there are 240,129,491 common shares issued and outstanding. After the consolidation, there will be 24,012,949 common shares issued and outstanding. No fractional shares will be issued as a result of the consolidation. Instead, any fractional share interest of 0.5 or higher arising from the consolidation will be rounded up to one whole share, and any fractional share interest of less than 0.5 will be cancelled.
The company's new ISIN and CUSIP will be CA4919022018 and 491902201, respectively. The company will not be seeking a new name or trading symbol. In accordance with the articles of the company, the consolidation may be approved by the board of directors of the company and shareholder approval is not required. The terms of all stock options, warrants and property purchase option payments have been adjusted in accordance with the consolidation.
The board has determined that the consolidation would be in the best interests of the shareholders to improve trading in the company's shares on the secondary market. When Kermode had over 200 million shares issued, the fact that the minimum pricing increment on the TSX Venture Exchange is a half-penny (0.5 cent) meant that the implied delta on Kermode's market capitalization was greater than $1-million per tick and the minimum market capitalization for Kermode was also greater than $1-million. After the consolidation, the implied delta on Kermode's market capitalization will be approximately $100,000 per tick, which allows the secondary market to have more granularity in pricing Kermode's market capitalization. Furthermore, the board believes that the improvements in the secondary market may impact the primary market for Kermode's shares by allowing greater flexibility in the pricing of future financings.
Registered shareholders of the company will receive a letter of transmittal from the company's transfer agent with instructions for exchanging their preconsolidation shares. Shareholders who hold their shares through a broker or other intermediary will not need to complete a letter of transmittal.
About Kermode Resources Ltd.
Kermode is a junior mining company hunting for exploration opportunities around the world.
We seek Safe Harbor.
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