My $0.02 WorthWhile we could all debate this until the cows comes home and that we will not agree, out of all the comments it is hard not to speculate, but here are certain reasonable details:
1. Trading is only halted when certain news is being divulged that will affect value as it did last week or in the case of irregularities. Don’t expect them to get involved if a company is mismanaged.
2. Interesting insider comments that despite coming to structuring agreement there is a protocol. Management who represents the company does have to bring it to the Board and certain it is subject to.
3. How will this all compare and will they be on the same page? Big Question.
4. While some blame GSFC, I do not share that opinion. After issues of not getting the financing done in 2013. The Board removed Robin uncertain he was the best person to get the financing done. In part because he did not want dilution.
5. The Chairman had to be behind it in an effort to save their butts.
6. If GSFC was behind it, I am not sure they would have been so much at odds over the financing and the previous Board.
7. Like most public companies, the executives and compensation were negotiated and paid out accordingly.
8. Clearly a big nut to crack with Robin having his own agenda. Raising the capital at these prices is an issue as often discussed.
9. They hired a makeshift banker who looked at the company on the merits of potash alone that is limited with marginal profits. A huge risk to most banks having been unable to raise any capital as a result.
10. Different vision and all the costs from what I have seen are accountable given normal agreements even if I do not like it.
11. All in all, Robin’s compensation and the Proxy battle account for $3mm another $3mm in minimal cost to operate plus current expenses, cash is now getting closer to $25mm meaning it is now essentially trading slightly above cash.
12. Unless you bought for less than possibly $1 per share is Robin is the only one who isn’t loosing as he collects his salary.
13. Robin did not go to Market in 2013 thinking he could do better and the potash sector fell apart. The only thing helping now is the exchange rate with potash below $450 pmt.
14. Unless GSFC come with a better offer, Robin is now having to compensate having had to fight to get back control.
15. Essentially, shareholders will have to live with a greater dilution that is now more than double as their equity position is reduced by 2/3.
After 4 years of not be able to get the funding done, doing a deal is paramount noting that without GSFC’s investment and off take agreement, this company and investors would have been fubarbed.
While I can praise Robin for some things, the balance is no doubt subject to opinion in what some may know to be fact, my take is that over confidence and lack of a good understanding in securities, market, and finance between family and friends who relied in him implicitly is where people often make mistakes.
Considering this has not really made any headlines is one indication either how insignificant KRN has become or the lack of confidence given how everything unfolded may very well be reflected in the current share price. Will this change once they respond with a conclusive solution? Let’s hope so because that is what they need to start doing given it only has been 33 months since the GSFC deal and close to 5 years he said they would start building….
Ultimately, I have trust issues with Robin as he is a master in saying what people want to hear. Can’t turn the clock back and the bottom line is how they have move forward with the best deal possible. I trust he has learnt his lesson and that all his tough talk about waiting is nothing more than bravado.
Time for answers and decisive action.