TSX:SGR.UN - Post by User
Comment by
Tradernickon Jan 06, 2015 6:34pm
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Post# 23291831
RE:RE:RE:San Gold will be at $1.00 plus by years end......
RE:RE:RE:San Gold will be at $1.00 plus by years end......I have no doubt R. Rule is talking about severance payments as they relate to change-in-control situations like we have with Kerr/SGR is being referenced, but not with the example he uses in this interview. Going back to the last information circular, severance payments when change-in-control is at play calls for Gestur to receive $1.2MM and Dale Ginn $1.16MM. Ludicrous amounts as Rule aludes to, and it circumvents an organization's ability to effectively merge.
At this point we still don't know if the merger with Kerr can go through, or will go through, or is there, in fact, a better investment that is being looked at. No doubt the terms of the 2018 debt maturity is being reviewed.
I believe the small, recent debt issuance (two tranches) was not to pay off severance payments as a result of the change-in-control because there is no change in control, at least yet. I believe the funds were for other acquisition opportunities, and we will know more at the end of the month/early Feb.