JournalistThanks for journalist lead Uncoverer. I have sent below to Barry. Hopefully he is more responsive than our regulators.
Hi Barry,
I wanted to draw your attention to a story of Russian stock manipulation in Canada – under the noses of our TSX and OSC regulatory bodies who have done nothing about it.
-TSX listed company HRG – 4 operating gold mines (3 Russia, 1 Africa), also, largest un-mined silver deposit in world (Prognoz) and soon new Africa gold find
-Russia’s largest steel company, Severstal, gets control via private placement (53%) last fall
-Sevestral takes control of Board and removes respected Canadian Board members
-Sevestral buys Standard Bank debt to take control of debt on HRG.
-all press releases put out (since Sevestral in control), simply to suppress stock price
- I put in complaint to OSC, TSX stating serious conflict of interest on HRG Board (attached)
- Q1 financials release last week shows company finally turning around with $1M profit after paying down $13M principal vs. $57M loss (full yr last yr)
- HRG stock finally starts to run with new Cormark price target of $.30 and Olma Bank’s target of $.65 (50% of their real value of $1.38)
-HRG puts out press release to state debt in default and Severstal may pay $.18. – obviously to keep price down
- HRG owns $38M of Detour Gold (DGC.TO) stock - which they could sell to pay off Royal Gold debt.
- Severstal debt (old Standard Bank debt) not due until 2010
- Nomos Bank debt could be refinanced now
-Severstal runs into its own financial problems – otherwise would have made offer long time ago
HRG Board claims it has been looking for funding to refinance their debt. I (and many other shareholders) strongly believe that they have made no real effort to refinance as it is not in the best interest of majority shareholder that want us out cheap. I am hoping you can write an article on this story soon as I believe Severstal preparing its official lowball offer.
I have links below to help you jump to more detailed info. Thanks for your consideration. Bullboards (link below) have other pretty good info on HRG from minority shareholder perspective.
https://finance.yahoo.com/q?s=HRG.TO price quote and press releases
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=26931954&l=0&r=0&s=HRG&t=LIST Bullboard post with article on Severstal’s finances