Here's what I sent to IR
Read it or skip it. Doesn't hurt for all of us to send them something
Hi team;
I'm a retail shareholder from the FIS days; I got interested just before Mr Randhawa kept PLS out of the previous sale to Denison, and was impressed by the first holes reported.
Like many other retail investors, I'm puzzled and a bit disappointed by the terms of the proposed merger with DML.
My concerns are:
The ratio of 1.26:1 is inadequate anyway, and becomes more so with every news release. It should be increased before anything is signed, to reflect the immediate success of the summer's drilling program. Should new results be treated by a separate added value, perhaps not linked to the value of DML shares? Their share price may be driven down by traders or potential suitors in an effort to devalue the PLS deposit before offers come in to DML. The merged entity, and FCU itself at present, may actually be more vulnerable to a hostile bid because some investors will settle for less, and they clearly shouldn't.
The PEA and updated resource estimate aren't included n the method of calculation of that ratio, but obviously would improve the value of FCU independently from DML. This is very rushed, perhaps because a low bid has already surfaced, but is having the same effect on company value as a lowball bid might.
The time horizon is extended several years beyond the previously-expected maximum of 1-2 years from now to sale. This is an asset frozen involuntarily, and a serious financial impediment to those of us who, after going long for 2 years or more, now find that the stated goal of the management has changed, to production from exploration. You have one of the best exploration teams on the planet, and have found a real crown jewel.
Like many others, I've been along for the ride, and await the next turn of the cycle in uranium. However, it's not possible for me, or my 800,000+ shares, to support the plan as it's contemplated. Several million shares represented on the Stockhouse board feel the same way. Investors need the PEA and revised NI43-101 factored into any compensation due from DML, and time for the summer drilling results to emerge. Why spend FCU's money on these operations only to give away half the resulting value?
I know you'll receive many similar emails and calls. No need to reply, (though it would be nice) but I'd truly appreciate an explanation to shareholders for the present terms, or a swift improvement in them.
Thanks for your time. Many thanks especially to Mr McElroy for what he's achieved.