TSXV:TVC.H - Post by User
Post by
nickbillfishon Nov 06, 2021 5:51pm
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Post# 34096395
Minority shareholder possibly diluted to zero!
Minority shareholder possibly diluted to zero!
also from the prospectus, per the shareholder agreement, I believe this capital raise basically dilutes Vecchiola to zero, so MTV doesn't have to buy them out. This doesn't help Vecchiola either in the arbitration if they are not providing any support, nor have they ever since they sold 70%. Sounds like MTV should have a favorable outcome to the arbitration.
"During this interim period, the Company anticipates requiring approximately US$11 million for working capital purposes at MTV until it can increase its production from the ramp-up of the Papomono Masivo mine including a reserve for contingencies in the event any unforeseen challenges result in cost overruns or delays. At this time, there is no certainty that the Minority Shareholder holding 8.9% of MTV will provide financial support to MTV and the Minority Shareholder has no obligation to do so. However, in accordance with the funding mechanism established in the MTV Shareholders’ Agreement (as defined herein under the heading ”Material Contracts”), the Company may subscribe and pay, with the proceeds of the Offering, all or part of the Minority Shareholder requested capital contribution thereby diluting the Minority Shareholder’s interest in MTV to below 8.9%."