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GOLDBROOK VENTURES INC V.GBK



TSXV:GBK - Post by User

Post by RoyallyScrewedon Sep 22, 2010 5:14pm
356 Views
Post# 17480919

Slight of hand...

Slight of hand...
There is a valid question as to what the voting shares constitute.Voting shares can carry multiple votes for each single share of stock. "Commonly, the "super voting" multiple is about 10 votes per higher classshare, although occasionally companies choose to make them much higher" (investopedia).

As well, there is no news release or otherwise that states GBK's actualownership of Jien Canada. We've assumed that it is 25%, but from thenews releases we have only been told the following: "Goldbrook owns 25% and Jilin Jien Nickel Industry Co., Ltd. owns 75% of the voting shares of Jien Canada. " As shareholders youshould demand that Goldbrook's actual ownership, not just voting shares, beclearly defined.

If those are the only shares that exist, then you could assume that GBKown's 25%, but that hasn't been made clear. Why identify them as votingshares if there are no other shares? Common shares can also be votingshares. In fact it's "voting common shares" that seem to be the issuehere. "...have purported to approve an issuance of voting common shares of JienCanada ("Voting Shares") to JJ that would reduce Goldbrook's percentageof Voting Shares from 25% to 4.21%" There is a lot that you don't know about the deal between Jien and GBK, and it's the details of that deal that will determine what the stock price should be.  I also have concerns about the other deals GBK has made with Jien... namely the Raglin Project.

So, my take is that Jilin Jien Nickel Industry Co. decided to issuecommon shares to themselves through some loopholethat effectively reduces GBK's share of Jien Canada to 4%. That isassuming that GBK owned 25% in the first place.

It also seems that there could be more than 2 partners in Jein Canada. The NR states "Goldbrook intends to vigorously defend its rights under the ShareholderAgreement. Goldbrook intends to commence court and/or arbitrationproceedings against JJ and others"

And others? Who are the "others"?
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