RE: RE: Police Raid Osisko Clifton Star can demand a $22.5 million loan from osisiko that clifton can pay back in shares valued at 3.12/sh when their stock only trades around $0.90/sh.
Osisko loses $15 million immediately on this deal.
Osisko is not managed well. Hopefully their share price recovers but mgmt keeps tripping up again and again
From the October, 2012 MD&A from Clifton Star Resources:
On June 16, 2011, Osisko notified the Company of its decision to terminate its participation in the Project. However, Clifton still has the right to access a loan of $22.5 million from Osisko on or before December 1st, 2012, for the payment to the property vendors. If Clifton were to access the funds, the Company would have the right to retire the loan (plus interest at a rate of 5%) based on the issuance of shares of Clifton to Osisko at a price of $3.12 per share for the principal and at market price for the interest.