RE:RE:RE:RE:RE:RE:RE:RE:RE:Liquidation of Eastplats
KaAn isn't going to let this go to a liquidation (unless they somehow pick-up the pieces for even less).
They did invest $20+ mil here (that we know of so far) - Why would they want to risk that unless they benefit??
Mining the scraps. Already profitting. Like I expressed to you via email, it is no coincidence that Diana Hu owns CGH Industries which sells scraps back to China. She took control of this company in May 2016.
They are now getting a taste of lawsuits, regulations ect. & got screwed by the
exiting board with the Sale/Pre-BEE payouts etc = all equaling a huge mess right now.
Sure. At the end of the day though, they own the assets... you don't (nor do any of the retail players here, and the big individuals are gone).
If they want to mine, I doubt it will be as a public company - they are best suited with FULL control under no regulations. If they raise cash as a public company then they dilute their own shares & any silent partners as well (I know they tried this once - but that looked like just another of their dirty plays). They can of course go this route, but will likely lead to more lawsuits as there intentions will really come into question then.
Few things:
1. They can do whatever they want with very little regard for the public because all that is left are retail shareholders which are completely powerless.
2. The dilution was done to spite the remaining funds/holders. Be bought out privately, or, accept dilution. If you accept dilution, it also means you accept the forthcoming costs of suing the company because of how they just f u c k e d you up the a s s... and none of those lawsuits have come from the ELR shareholders. Why? Because, there are none. If the situation was as peachy as it seems, this company would be nailed - but nobody is involved right now. Harrington/Daniel Guy + Ka An/affiliates run the show. If the retail base would like to come together and foot the bill for a few hundred thousand to launch a class action, go for it!
3. Low odds of lawsuits, as mentioned above. Alpha Capital is trying to squeeze out what they can as per their 2007 agreement. Other than that, they are screwed.
1) Yes, they can still run into the ground much further - burn cash, dilute etc - but in the end, at some point they still have to find a way to create cash out of this for their large investment (how does diluting their own shares & mining at a loss do that).
Does not matter. I bought this story as much as you, and I do not believe it anymore. I do not believe it because I see how negligent and how little regard they have for the share price. They have allowed destruction to not only their market value of their investment, but, for the market value of the company... why? Cuz, it doesn't matter to them: they have the assets, not you. Under the table profits for all we know can be made from the scrap metals and none of this will be seen for ELR shareholders.
2) They can flip the works for a profit
Don't count on it. Management has the option to do this whenever they want... which is not even worth speculating over. Just the sheer amount of depreciation and time decay on the ELR investment worth writing off for any retail bagholder.
3) or they can try take private for some valuation in the middle
And buy out who? Everyone who owns the company in majority are the same people who run the show...
Maybe they continue draining cash & make moves to de-value the company & then try take private for peanuts...
No. As mentioned before, who are they buying out?
Maybe they run into the ground & dilute there own $20 mil along with the rest of us & start the mine
Maybe they flip the works & make a mint around +/- $ 2/ share
You do not consider the scrap metal value which is what Diana Hu is almost certainly banking on and ELR share price will see nothing of. Furthermore, they have the option to do whatever they please with the assets which is for their own interest - and again - this is not even worth speculating on because 10 year hypotheticals are silly at this point where most retail holders who bought and held through 2015 are losing 60%+ of their money unless they are a market wizard like Colt and buying boatloads in the .30c range.
At the end of the day, you have to think who ever put up the money expects to make more money on that investment. The question is, what will that mean for retail holders when the "big move" happens ???
Does not matter. Retail does not know better than the guys who accepted to be bought out privately at .20c+ higher prices than where we currently sit. If it was that bad then, it didn't suddenly get better.
Retail was not bought out because they are insignificant and it's an additional expense. Now, between Harrington/Daniel Guy, Ka An/affiliates, it's safe to assume 50%+ of the shares are owned by them.
And, thus far, those are the individuals who took the SP from $1.15 (when KA showed up), to where we sit today PLUS rejected an asset sale which is also worth more than today's market cap. Had that deal gone through, which would have been in everyone's best interests (EXCEPT for the ones who rejected it which is that aforementioned group, which should be the BIGGEST red flag), the price would have been realized at around $1.50 or so.
I am liquid and I would not bet my $ on these guys. Even worse is being tied up in this stock and hoping that the baffoons running the show here suddenly have your best interests at heart.