Mr. Kirk Reed reports
Candorado Operating Company Ltd. will not be completing the flow-through financing as previously announced in the company's Stockwatch news release dated Dec. 2, 2010. The flow-through private placement had been agreed to at 10 cents per flow-through unit by a memorandum of understanding with interested parties. Prior to the closing date of the financing, the company's shares dropped and the interested parties declined to proceed. Management has attempted to secure subsequent sources of non-flow-through and flow-through financing, to limited success. As a result, the company will be seeking shareholder approval to consolidate the company's shares on the basis of one new share for up to 15 current shares in the future. The current low stock price negatively affects the marketability of the company's existing shares and its ability to raise additional capital. The management believes that in order to secure alternative financing and avoid significant dilution of its existing shareholders, it is in the best interests of the company and its shareholders to consider the consolidation of its shares at this time. Management is actively seeking joint venture partners and option earn-in agreements to continue development of its projects until such time as financing can be secured through private placement in its shares.
We seek Safe Harbor.