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First Uranium Corporation T.FIU



TSX:FIU - Post by User

Post by uranicynicon May 10, 2012 12:17pm
161 Views
Post# 19894765

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FIU management has tried to beat us into submission by using the scare tactics of massive dilution  possibly followed by bankruptcy. If we succumb, our reward is maybe a few pennies a share payable in the distant future. I would argue that dilution is more of a threat to Anglo, Village, Franco Nevada and let's not forget the debenture holders. Bankruptcy is another scare tactic that's going to affect all the big players that are trying to pick up assets on the cheap. As soon as bankruptcy is declared MWS and Ezulwini will be shut down. They will then be put up for auction and it could take quite a bit of time to complete the transaction. The new owners will have to absorb start up costs and teething pains to get things up to speed again. There will also be no escrow fund to make claims on since all sales will be on an 'as is' basis.

 Common sense tells me this is not the best way to go but I'm amazed that both AGA and Gold One are hanging tough and refusing to up their offers. The other bizarre fact in this tale is that the last quarter's report included that sentence about Ezulwini being profitable as of May 2012. What's all that about? Why aren't they running things like the want to be profitable? No wonder South Africa was the scourge of the world in latter half of the 20th century.

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