RE: RE: RE: RE: prognoz Thy,
A follow up to my comments regarding Nord only requiring the majority of minority. Once this offer expires, if Nord then controls more than 90% of HRG shares, they are required by Canadian law to acquire the remaining shares via a compulsary acquisition. I am quite certain we don't have to worry about this scenerio.
However, if after the expiry date of the current offer Nord has acquired less than 90% of HRG shares, they have made it abuntantly clear in their circular that was posted on SEDAR and mailed to all shareholders, that they intend to acquire the remaining shares through a subsequent amalgamation. This has been outlined on Chris's latest communication. To acquire these shares, they will call a special shareholders meeting. At that meeting an offer will be made to the shareholders and we all have the right to reject or accept that offer at the meeting or by proxy. However, at this meeting, Nord will be allowed to vote the shares it has acquired via the offer that is currently available. That means that to turn down any offer at that meeting the majority of the minority will hold the power. If Nord holds the majority, the deal will go through. The deal would likely be voted against if we as a group hold the majority at that meeting. The most difficult thing about this is, and what has me worried the most is our ability to collect the proxy vote of hundreds of shareholders prior to the meeting. It will be no small task. It will be absolutely critical that we have the votes of more than 104M shares to vote down the offer at a subsequent amalgamation. This will force Nords hand and they will have no choice but to raise the offer at that point. I think with their financing they will have the money to pay close to $4 a share, and thats really what i would like to see at the end of all this.
Because of this i still think to see true value this will have to go to courts. I have a feeling that there are enough folks out there that will vote in our favour but won't necessarily put their names down on our list of supporters. I think we probably would have majority at that meeting, however with all the tiny retail investors out there, i am worried about our ability to collect that many proxies. Having a couple funds come out of the wood work that have millions of shares would make our job a whole lot easier.