GREY:WFEMF - Post by User
Comment by
senkins1217on Feb 24, 2014 8:25am
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Post# 22241557
RE:RE:VOTE for PREFERRED SHARES - IMPORTANT WE VOTE!!
RE:RE:VOTE for PREFERRED SHARES - IMPORTANT WE VOTE!!In response to Guerreiro...
Of course there is an alternative!! if the dundee controlled board insist on the need for the funding then it should happen on terms that a commercially tolerable to the majority of shareholders.
Asserting that we have no other choice, undermines what rights we have as shareholders. Voting against terms of funding does NOT mean we are blocking the funding. The board of directors should be working in our interests as shareholders not just their own. The current terms only benefit them as sole subscribers.
Given the $350k loan, and previous ~$1 placement, and the current cash burn of the company, the company has the breathing time to revising the ridiculous terms of the debenture.
I also address your point about Dundee wanting to "protect their investment". This is something that everyone has the right to do, but ONLY within the confines of the most fundamental rule of finance: " greater the risk, greater the return". So if you want more protection it must be at the cost of some potential return. Have you noticed that the preference share has all the protections but does not forego the upside characteristics that ordinary equity holders have earnt with the risk they take?
Dundee are a financial institution and they know better than anyone that they are getting a deal of a lifetime by some how defying the principles of finance that our markets trade on.
Supporting this preference shares is the same as agreeing with Dundee that we are the ignorant shareholders they take us for. I certainly do not intend on agreeing !!!
I mean no offence to Guereiro, but supporting the resolutions in the EGM because the board and significant shareholder might turn hostile? This is ludicrous. Why does the legal structure of a public company exist in the first place? not to mention fiduciary duty?
They may be a significant shareholder, but they are not the majority. The board work for us!
And yes please everyone, do your DD!