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First Uranium Corporation T.FIU



TSX:FIU - Post by User

Comment by idunnobuton Jun 06, 2012 11:19pm
161 Views
Post# 19987961

RE: Point is.....

RE: Point is.....

At the beginning of 2011 the shares were more then double your 0.63, and the company raised 50M + to keep developing the mines to completion in order so that the company could be profitable. The company looked cheap to me based on what the BOARD had been saying. I will never support this board because they cannot be trusted. They should have resigned rather than give away the assets. Now, they present corporate suicide as the "best" option, the other option being financial suicide for shareholders.

The debenture holders will never allow the company to go into bankruptcy because it is too uncertain what will happen to their value. They do not want equity, even all of it, in a failed FIU. The note holders will never allow the company to go insolvent because they will lose everything.

Let's say you disagree with me, and yes, you think debenture holders want equity. Then the price of the debentures would be closer to $100, and they would be ecstatic over dilution. But the board doesn't support dilution and it's never going to happen while the board is in charge because the board is doing everything is can for debenture holders. The board is threatening shareholders with dilution. I think the situation shows the debenture holders just want their money back. If they have to wait a while, then so be it, let them wait.

So, if that's true, then we vote down the asset sales, and let the big shareholders fight over a new board.

All you really need to understand here is the business value of the mines (look back at all the glowing things they say about the mines, and how much higher the price of gold is now), and how the other side (Anglo, debenture holders, note holders, Gold One) are getting everything they want, shareholders are getting pennies on the dollar, the board is supporting fully the other side, and yet, amazing, we still hold the power to deny the other side any value.

Vote Yes to #1 and #2 to give the BOARD victory and ensure their personal success. Vote No to force another round.

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