Colossus Minerals Inc COLUF

Colossus Minerals Inc is a Canada-based exploration stage company. Principally, it is engaged in the acquisition, exploration, and development of mineral properties. The company's project includes Serra Pelada which is situated in the mineral prolific Carajas region near the towns of Curionopolis and Parauapebas, Para state, northern Brazil.

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Colossus Minerals Inc

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Comment by naeden99on Jan 20, 2014 11:14pm

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Post# 22113962

RE:Can someone explain why

Sandstorm doesn't have common shares. They have a stream interest that is partially secured, the rest being pari-passu with the notes. They are putting in $4 mm in debtor in possession financing, but that will be converted to shares in the restructuring.

Noteholders and Sandstorm have a higher claim on the company than shareholders. By definition, shareholders have a residual claim on the company. If the noteholders and Sandstorm aren't repaid in full, shareholders have no claim on the company.

If you don't understand this, you should probably not be investing in equities.

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