RE:FCU Overhang isn't thinking this through...@Quakes well articulated sir and correct.
quakes99 wrote: Right now the best thing for FCU Oversight is to be FCU Outta-sight! The absolute worst curse on a stock is to have some illegitimate group of dissident shareholders providing what they claim to be critical oversight from some anonymous position hiding behind a curtain. Fission Uranium is driven by retail investors, and none will be attracted to a stock that has an overhang that is professing to be assessing its options with respect to some kind of management change.
Potential investors do not want the chaos and uncertainty that such a group creates just by their very existence! Investors want to feel good about investing their hard earned cash in a company, and don't want to be dealing with the risk of some group trying to change the way the company is run. That is a recipe for total destruction of shareholder wealth. FCU Overhang are definitely not on the side of legitimate long term shareholders looking for share price appreciation from the summer drill results and an upwardly revised Resource Estimate and PEA. What Ross and Triple R giveth... G5 and FCU Overhang taketh away. :-0
Have you really thought through what is involved with dismissing the CEO that created the company, and is the largest single shareholder?
The CEO is a paid employee, delegated as the mouthpiece and contract signing authority by the Board. He speaks on behalf of the Board of Directors and executes their Strategic Plan. The 7-Member Board has been directing Dev to sign on their behalf so they are the ones who are the ultimate authority and to whom all responsibility and fallout from decisions lie. They were the ones that gave their unanimous support to the deal, and they hired Dev to carry out that duty on their behalf, and sign for them on the dotted line. To fire him because he did as he was instructed to do is totally ludicrous and shows a complete lack of understanding of Corporate Governance.
So, FCU Overhang's first order of business will be to do a Candidate Search for a replacement CEO. Someone with at least the same experience as Dev if not more. They will expect the same salary and benefits as Dev receives, and will also expect to be offered a large Signing Bonus before entering into a corporate battle zone where they will be hated by all the existing Board members as well as the 40 employees of Fission Uranium who will be loyal to their current manager Dev and President Ross.
Then, FCU Overhang will have to spend hundreds of thousands of dollars to hire corporate lawyers, send out advertising, get a court order to allow access to shareholder data, and do a mailout to every shareholder globally, asking them to support a resolution calling for the removal of at least 4 of the existing 7 Fission Board members, along with endorsing an unknown and unproven slate of replacements. There's no way Fission and existing shareholders are going to pick up the tab for that. They will also have to convince over 50% of 400M voting shares to abandon the CEO that built the company from the ground up. The replacement is going to have to be able to walk on water to meet those expectations.
IF they are successful at ousting 4 board members and replacing them with a new group who have an agenda which is unclear and undefined, then the Board can vote to dismiss the CEO. As per his employment contract, he is entitled to 3 years salary, all outstanding bonuses and vesting of options, as well as 2 years of benefits... likely going to cost near $1Million. Add that to the new CEO's salary and Signing Bonus and the cash cost grows even more. And we both know that Dev is not going to go quietly... he will be kicking and screaming all the way to the door with his lawyers in tow.
Ross and Dev are joined at the hip, built the company together and have toiled for years to create over $1B in assets. As per Ross's employment contract, he also has the right to terminate his employment whenever there is a change of company control such as would happen if 4 members of the Board were replaced. Given the choice of taking $1M in cash and options to leave with Dev, his choice would be easy... go with Dev to continue working at Fission 3.0 where there is cash in the treasury and they are already the CEO and COO/President. Add another $1M to the cash cost of management change, and the loss of the Basin's leading Uranium geologist.
Triple R expansion would be stopped dead in its tracks, and both Dev and Ross would likely take their technical team with them to Fission 3.0 to get back to work making new discoveries, leaving the new impotent CEO of Fission to try to rebuild and salvage whatever is left. Employee loyalty at Fission would likely see the loss of many Fission employees who would be offered the same jobs at Fission 3.0 in Kelowna, leaving Fission with a huge recruitment problem as Fission 3.0 sets up a separate office and walks away with a complete technical, financial, and strategic planning group to work at 3.0 for the same salary. Fission Uranium Corp would be decimated. How is that CEO Recruitment plan going?
Meanwhile, investors will be watching in disbelief as the FCU share price hits new record lows and is eventually delisted from the TSX to return to the minor leagues on the Venture exchange. Major shareholders loyal to Ross and Dev will vote with their feet and buy into Fission 3.0 as the next great project generator, while Triple R is mothballed as the new impotent CEO goes looking for a new Chief Geologist, Technical Team, and the like. If you thought the exit of 50M shares after the merger announcement was something, just wait until the same number or more go running for the exits when the whiff of some "change in management" hits the street. Investors HATE uncertainty, and they will be falling over each other to distance themselves from Fission Uranium as quick as they can while they sill have some cash left to redeploy.
That's the kind of Pandora's Box who's lid FCU Overhang is toying with. It is an extremely dangerous game they are playing, and one that is destined to both fail and take down every Fission shareholder with it.
Such "Management Reviews" are the last desperate attempts by companies with no cash, huge debt, and no valuable assets left to sell in order to pay the bills and ward off creditors and bankruptcy. They are the last resort for distraught shareholders who no longer have any equity attached to the shares they hold, so changing Management gives them new hope to recover from their losses.
Fission Uranium is in the opposite situation... with a proven and successful Management Team that has discovered and proven up the largest and lowest cost new open-pit mineable Uranium deposit anywhere in the world. There is plenty of cash on the books, and no debt to worry about. The PLS assets have just been given an assessed value by RPA of over $1Billion. Fission Uranium has got everything going for it! There is no need for desperate attempts to keep the company from bankruptcy. Even just talking about a change in management makes absolutely no sense. How is that going to make the company and its shares more valuable? How is it going to improve the bottom line????
Do you REALLY want to open up that box and see what happens?
If you do... then I am outta here at the next opportunity.
And good luck with attracting new investors wanting to take a chance on a ship that G5 and FCU Overhang are pointing towards the nearest iceberg. :-0 You'll need it!