High River Gold Mines Ltd HRIVF

Board Seats, weak hands, RIghts Offering, conversi

[ccharlwood]

Board seats are voted in at AGM and is done by counting all votes . Therefore, Severstal has the most say and pretty much forms the Board. It may be that the rules do not even require independent Board Members. Independents are typically voted in for optics. Severstal may in future vote in more true independents  - if they decide they want to improve optics for investment community.

In terms of buying up the weak hands to get more shares into long term investor's hands, this is a very good idea. I suspect the institutions continue to buy regularly - so it can't hurt for some long retail investors to do the same. However, keep some money aside as there may be an opportunity to participate in financings in future via a RIghts Offering. Therefore, we would all want to buy our pro rata share of such an Offering in order to not be diluted.

Again, both of these comments are subject to Severstal changing its tune and starting to promote HRG for its own benefit. Tomorrow's release will give us first indication of  any change in tone. As I have said previously, if they do change their tone, then it will benefit us all to help Severstal promote this story to new investors. Having said this, there is still a risk that  Severstal tries to convert its debt to equity, but the TSX would have to approve such a transaction - and there would be some serious public opposition from us minority.