NGN seems to be little more than a shell, waiting for someother plan, since their so called great sulphide (array of metals) resources at Point Leamington, Newfoundland, found by Noranda in 1971 but never developed by Noranda, seems to be for show and hype claims but no serious intentions to develop it. NGN bought it 2 years ago in 2013 extremely cheaply, and still no revenues or real close operating status yet.
https://www.newmarketgoldinc.com/s/Point_Leamington.asp
Then if NGN is operating under show and hype pretenses as it were, and possibly alternatively just a shell for a private business’s reverse takeover endeavor to become listed, who is the private company doing the reverse takeover of the shell NGN now, to become listed?
Who?
Or is it someone that is already listed?
Well who will be the majority shareholder of the NGN’s shares, after the merger with NGN, if it takes place. It appears to be the same luxor majority shareholder of CRK now, but with 66 million out of the 134 million shares of NGN. Certainly the majority shareholder if not quite 50%. But I think it’s really 53% control as determined below.
Majority shareholder Luxor of CRK and NGN seemed to have concocted this contrivance of a plan, where Luxor consolidates CRK shares, says it is agreeing to a new business plan, that will consolidate NGN’s shares continuously (ie merging with more gold companies to be like a holding company of them all). Which makes no sense to average shareholders who can’t buy 100s of thousands of shares at low dollar prices, but big pockets investors or groups still can. And Luxor capital group still remains majority shareholder of the new merged company NGN and most likely 53% as will follow.
If NGN could have gotten financing for $123 million, the amount of all Luxor’s CRK shares to get 70% control of CRK (333 million shares), or $176 million for all 476 million of CRK’s shares, why not just use it to do what they initially intended to use it for, to develop it’s so called fantastic massive sulphide resources (of numerous metals including gold) at Point Leamington, Newfoundland.?
Isn’t it really fantastic? Why claim it is then?
Who just bought the roughly 20 million shares at $1.25 = $25 million for merger payments purpose (but certainly not complete purchase of CRK), which reflects the 1 for 5 consolidation of NGN as a merged company? In pre merger NGN costs, that is $1.25 / 5 or $.25 and 100 million shares dilution to equal that same $25 million result. Luxor pre merger has 70% of 476 million CRK shares or 333 million shares compared to minority CRK shareholders’ 143 million shares, the present 51 million shares of NGN, plus the equivalent 100 million to raise NGN’s just now $25 million. So Luxor is still the majority shareholder, ie 333 million divided by 627 million = 53%.
Hmmmm!!!!!
Why doesn’t NGN just do that dilution of shares to develop the so called fantastic sulphide (array of metals) resources that NGN is sitting on in Point Leamington, Newfoundland, unless they aren’t so fantastic? Then who would lend NGN $25 million which isn’t nearly enough to buy out completely Luxor’s shares of CRK at $123 million, let alone all the shares of CRK at $176 million, at the so called premium price that NGN is asking of $.37? Or who, to alternatively develop NGN’s so called great sulphide resourses at Point Leamington, Newfoundland.
Apparently no one would or Luxor should have insisted a complete purchase by NGN in order to be like a poison pill to prevent the not only friendly takeover of CRK that does not benefits CRK and CRK shareholders at all, but for what should have been a hostile takeover where Luxor could have asked for $714 million. Therefore even more impossible for NGN to get financing for that. $714 million because CRK’s P/E ratio is the ridiculous 3.42 compared to most producing and profitable gold companies well over that, like the similar LSG at 17 P/E ratio! 5 times more the above $176 million at $.37 for all CRK’s shares now at say $1.50 like CRK should be = 476 million shares times $1.50 = $714 million or closing in on a billion dollars.
And therefore why would luxor capital group, the majority shareholder of CRK, agree to a friendly merger with NGN if NGN can’t afford a takeover and Luxor doesn’t have to do it in the first place. Especially when changing to a business plan going forth that just continuously consolidates NGN’s shares when continuously merges more gold companies as their business plan states they will do.
https://ceo.ca/2015/05/11/mining-heavyweights-seek-to-build-mid-tier-gold-producer-in-190m-newmarket-crocodile-merger/
“Crocodile is an established gold producer in Australia, while Newmarket is little more than a shell company at present. However, Newmarket boasts some very big names on its board, including entrepreneurs Lukas Lundin, Randall Oliphant (of New Gold Inc.) and Raymond Threlkeld (of Rainy River Resources Ltd.). The company's plan is to use the Crocodile mines as a platform to buy more high-quality gold assets under the "Newmarket" name.”
For those that have millions of shares it doesn’t hurt so much, but those that just have 100,000 shares or less it does, since CRK’s price isn’t nearly at the height of the coming gold bubble market yet to already have made their big money, and not to care about any consolidation then, which just rearranges the bubble’s amount to lower shares but higher prices to the shares, to match the pre consolidation value?
If Luxor is afraid CRK has too many shares, consider the very small size of the precious metal market compared to the stock market size in general, and when emphasis shifts from a paper money based world currency system, and equities bias, to gold based money system (still using paper money but gold and matching productivity growth, as paper money use, basis) and precious metals bias, the amount of money pouring in to buy gold stocks will more than compensate for so called too many shares, and bid up gold stock prices like CRK to quite high levels, regardless. Probably $20 and higher, depending how high the gold metal price goes, which looks it will be very high when compared to all the QE money printing that has been done in the world, and all the otc derivatives hedges and leverages and casino like bets that have been done in the world. Both in many multi trillion dollars levels.