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Most read post on this board in many years !
Post must have been of interest to a good number of people interested in Integra !
Takeovers - Reverse Split
https://www.stockhouse.com/companies/bullboard/v.icg/integra-gold-corp?postid=25806261
blue0987
February 06, 2017 - 03:30 PM 528 Reads
Post# 25806261
Takeovers - Reverse Split
FriendlyTakeover - Unless their's an upfront offer of around 1 billion dollars with other contingencies attached, an Integra take-out without THIS management team, FIRST uncovering the full value of the entire Lamaque Project, in order to maximize the full value for shareholders, will not IMO happen.
Hostile Takeover - With 66 2/3% shareholder approval needed, without management's blessings, it would be a near impossibility to obtain. With the top 3 shareholders in Integra being Eldorado, Mundy, and Van Eck those shares in itself would be enough to thwart any takeover. If Eldorado was the hostile bidder (unlikely) they would have to forfeit their 13% involvement when the vote was undertaken, making sure that 66 2/3% of independent shareholders support the hostile transaction.
Reverse Split - Those exploration/production companies having weak balance sheets/negative cash flows, that executes a reverse stock split from a position of weakness are normally looked at by the markets as desperation measures, that then create downward pressure on their stock afterwards.
If, as in Integra, executed a reverse stock split from a position of strength, there can be positive results, some of which are:
1) A strengthening of its Capital Structure, allowing Financial flexibility with current & future expenses and Investment Opportunities. (What other Investment Opportunities would Integra like to undertake?).
2) Allow Integra to qualify for other senior listings as in the TSX, along with Nasdaq or NYSE).
3) Integra becomes more viable for other Fund & Institutional money to invest in, with a more attractive share price that meets their prospectus criteria. (Who could argue if the consequences of a reverse stock split enabled Integra to be included into the GDXJ?).
4) Eliminates one of the biggest knock new investors have with investing in Integra Gold, our share count.
A reverse stock split from a position of strength that will present itself even more so with the 3 upcoming major catalysts this year, in itself would strengthen the company if utilized correctly in future financing, investment opportunities, improved stock listings, greater fund, institutional, and retail involvement. GLTA
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