Going Forward OK, now as we all adjust to reality of a new "cornerstone" owner of CRK, here are some things to think about....
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- Float for CRK goes from 309 Million shares to to about 91 Million shares. [309 sh O/S minus 70%] This is plenty of liquidity, comparable to many Junior Miners.
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- Luxor has taken up the shares (1) and declared all of the conditions met. Now they need to pay for shares. Payment should be received within 3 business days! {see my previous post}
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- Next we need the BOD to resign enmass per the agreement and new directors appointed(2):
Board of Directors’ Representation
Immediately following the “Change in Control Time” at which the Offeror takes up and pays for such number of Common Shares that, together with Common Shares already owned by the Luxor Group, represents at least a majority of the then outstanding Common Shares, Crocodile Gold will use its best efforts to cause such number of Directors to resign and such number of new Directors to be appointed, such that the Board of Directors will then be comprised of five directors as follows:
1. the Chief Executive Officer of Crocodile Gold;
2. two Independent nominees designated by Crocodile Gold; and
3. two nominees designated by the Offeror, at least one of whom will be Independent
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Hope Bharti doesn't get re-appointed to the BOD! Since he tendered all of his shares, doesn't that mean he'd now meet the definition of "independent?" Or does the title of "Former Czar of CRK" disqualify him as "independent?"
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- Then remember that at some point in the future, CRK needs cash! Will need to watch to see how this is completed - either equity or debt. (3) Also will be interesting to see how the share price reacts when such financing is raised: will unknowledgeable shareholders show up on BBs and "whine" about switching from one "bad" management to another? This information has been out there since the first offer circular, but probably not read by most, so they will be "shocked" to learn. Text from the CRK January circular:
The Board of Directors believes that having the Luxor Group as a cornerstone Shareholder, with a vested interest in the future success of Crocodile Gold, will significantly assist the Company in executing its strategic vision. In addition, Crocodile Gold will require financing in fiscal 2012 in order to pursue the development plan that it commenced in spring 2011 and the Board of Directors believes that the Luxor Group may be able to assist Crocodile Gold in broadening its access to equity and debt capital. The Board of Directors believes that without the support of the Luxor Group, Crocodile Gold may find it more difficult to raise the required funds.
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- Finally, one might wonder if Luxor will step into the public market and try to buy the additional 45 Million shares that it wanted but did not get? Luxor offered to purchase 215 Million shares but only 170 Million were tendered. So if they paid 62-cents for the tendered shares, why not have one's agent sit out on the bid vacuuming up shares at less than 62-cents. This could put a floor on the share price, if employed. This will be something to watch for. Anybody know which house Armant/Luxor clears its trades through?
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1. https://www.newswire.ca/en/story/917705/luxor-capital-announces-expiry-of-offer-and-takes-up-deposited-common-shares{found buried on CRK web page...}
2. https://www.crocgold.com/Theme/Crocodile/files/Directors%20Recommendation_v001_r9cdur.pdf {see page 16}
3. See page 7 or 9, item #7 of pdf from 2 above