Good Strategy for the Chosen FewNow i understand the Stan connection and how Allana is "in" Forbes/Manhattan. It is nice that Allana is one of the 20 to 25 companies with access to Forbes/Manhattan in house resources!
Glta
Karma
"Allana has agreed to acquire the properties from three private companies,
Forbes & Manhattan, Inc., SB Management and Ethio-Gibe Canada Mining PLC in consideration for an aggregate of $2.5 million in cash payments over 3 years and the issuance of
4 million shares. The property will also be subject to a 3% NSR of which 50% can be purchased for CDN $ 5,000,000. Both Forbes & Manhattan, Inc. and SB Management are non-arms-length parties to the transaction as a result of Stan Bharti, an insider of each, being a 10% shareholder of Allana. Accordingly, completion of the acquisition is subject to the receipt of approval of the TSX Venture Exchange."
Stan Bharti: Inverview with Energy Report Aug 13/2010:
There’s a lot of leverage in junior companies.
If you can get in early on, with what we call the seed stock—
.10,
.20,
.30 cents—you see these seed stocks grow. Five key elements drive junior companies. One is a
good asset. Second is
management. Third is the ability to
raise capital. Fourth is
telling the story, promoting the stock. Fifth is
good capital structure.
We bring all the companies that we invest in into our shop. We surround them with our own lawyers, accountants, IR people, investment bankers, analysts. We have all of them in-house so that a junior company can operate like a major without the overhead of a major. We have more than 100 people in the Toronto office alone, for example—
more than 25 geologists, 20 engineers, several securities lawyers, four or five investment bankers, two or three full-time analysts and accountants. So a CEO of a junior company can access that expertise without having to really pay much for it because that expertise is available to 20 or 25 companies. So this is almost like an incubator or a venture-capital (VC) model but in the public marketplace.