RE:Lost VMC jobsHightTea, we are grateful to you for sharing with us your knowledge about the company using your privileged access to what is going on. This is helpful since the company's new regime says very little relating to material events such as the sale of the Animal Health business and its subsequent execution. Nor have they commented on why the stock price has declined 26% in the two weeks since the Special Shareholder Meeting.
Companies are required by the TSX (in Policy 3.2 Filing Requirements and Continuous Disclosure) and Provincial Securities Regulators (in National Policy 51-201 Disclosure Standards) to report on material changes to the business immediately. They are not permitted to gather them up and announce them later during the Quarterly earnings report. But when we have you as spokesman for the company, who needs continuous disclosure. I just wish Jennifer got herself a Stockhouse ID and discussed this stuff directly.
As a shareholder, I can only read the Share Purchase Agreement which describes in detail the terms of the sale of Animal Health. That legal document says that the purchaser does not have to offer employment to all Animal Health employees. Further evidence is that the leases (for company cars) in discontinued operations got revised downward in the last earnings release, likely reflecting the status of negotiations. That said to me that some employees of Animal Health were going to be let go.
Anything they say in the upcoming quarterly earnings release (now delayed a week) will be in the subsequent events section and the letter to shareholders. This is because the financial statements (and cash balance) are as at March 31, but the sale of Animal Health didn't close until April 15th. Moreover, we won't have a clean balance sheet which excludes Animal Health until the June 30th financial statement, usually released in early September. And we won't have a clean income statement until the Sept 30, 2014 quarterly report usually released during the AGM in November. It's a long time to have to guess what is going on.
Please be assured that I don't need your frequent editorial on risk in my investment. But it would help me if you could tell me who CIBC and BMO are and why are they selling at 18 cents when they could have sold at 23 cents WITH CERTAINTY. They could have looked at the close price on Friday April 11 and then walked into the Norton Rose conference room on the following Monday and presented Mr. Rae at 9:00am with one simple typewritten page saying they wished to dissent to the proposal being voted on. But they didn't. So please enlighten us: Why sell now? WHAT DO THEY KNOW THAT THE REST OF US DON'T? You probably even know if the farm has been sold. Tell us about that too.
I'm becoming as bitter as Zep. Hey Zep, what pill do you take for this affliction?