Friday's Press ReleaseLet's have a good look at the latest Press Release Nov 20, 2009
I will outline in bold some of the important parts that the comapany tried to slip by
Yukon-Nevada Gold Corp. announces that the September 2009 private placement needs to be approved by shareholders
VANCOUVER, Nov. 20, 2009 (Canada NewsWire via COMTEX News Network) --Yukon-Nevada Gold Corp. (Toronto Stock Exchange: YNG; Frankfurt Xetra Exchange: NG6) Robert F. Baldock, the President and CEO of Yukon-Nevada Gold Corp. (the "Company"), announces that, pursuant to a Notice of Private Placement filed with the Toronto Stock Exchange (the "TSX") on September 22, 2009, the Company has previously negotiated a $1,000,000 non-brokered private placement to sell 10,000,000 units (the "Units") at a price of
.10 per Unit. Each Unit consisted of one common share (a "Share") and one share purchase warrant (the "Warrant"). Each Warrant can be exercised to purchase one additional common share (a "Warrant Share") at a price of
.125 per share within 18 months of closing of the private placement. The warrants provide for adjustments in the event of stock dividends, subdivisions, consolidations, and other forms of capital reorganization. There was no finder's fee payable on the private placement. No insiders of the Company participated in the private placement.
In accordance with Section 607(g)(i) of the TSX Company Manual, as the pricing of the Units was outside of the TSX's allowable discounts, the exercise price of the Warrants was below market price (as defined by the TSX) and the maximum aggregate number of securities issuable by the Company pursuant to a private placement which closed on August 31, 2009 (the "August Private Placement") and the current private placement, including warrants, aggregate 102,100,000 shares, or 30.64% (in excess of 25%) of the Company's issued and outstanding share capital prior to completion of the above private placements. Closing of the private placement is subject to both the approval of the TSX and shareholder approval, which will acquired by written consents pursuant to Section 604(d) of the TSX Company Manual.
Votes of the common shares held by subscribers to the August Private Placement as well as common shares held by the subscribers to the Units will not be included for the purposes of obtaining such shareholder approval; therefore, 42,132,000 shares, representing the shares issued to the subscribers of the August Private Placement and the shares held by subscribers to the Units, will be excluded from the vote in regards of the required shareholder approval
First they issued more shares and warrants then they were entitled to, and then they gave an exercise for the warrants which was below what was allowed by the TSX.
So I guess the TSX has put them on a spot of having to correct their own mistakes. So first they are going to have to get shareholder approval to increase the PP from 25% to 30.64%, and then the warrant pricing must be corrected....maybe that's why the share pricing has been pounded down???
I guess we will see what next week brings....maybe more NR's ........Richard