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QUEST RARE MINERALS LTD V.QRM


Primary Symbol: QRMLF

Quest Rare Minerals Ltd is a Canadian exploration company developing Strange Lake rare earth deposit in northeastern Quebec, Canada. The Strange Lake REE deposit contains quantities of all the rare earth metals used in permanent magnets. The company is to become a supplier of rare earth oxides for the permanent magnet industry to be used in variety of industrial and consumer applications including wind turbines, automobiles, consumer electronics and medical equipment. Its project portfolio includes Strange Lake Rare Earth project, and Strange Lake Preliminary Economic Assessment.


EXPM:QRMLF - Post by User

Bullboard Posts
Comment by STXinvestigatoron Aug 07, 2017 11:31am
212 Views
Post# 26553630

RE:QRM filing for bankruptcy is extremely suspicious........

RE:QRM filing for bankruptcy is extremely suspicious........

In fact there are several issues that demand answers, or the QRM shareholders should file summary class action litigation against Lortie and his associates:

1. Exactly who purchased the $550,000 debenture almost half a year ago, in which the entire QRM assets were pledged against repayment?  At no time did the company actually identify the party.  Essentially, that means this anonymous entity might be able to acquire all QRM assets for the mere payment of $550,000...and the key question is this: did Lortie and his buddies agree to such a preposterous collateral arrangement based upon some type of previous kickback or future payoff once the company is turned over to the anonymous debenture holder?

2. In terms of the MOU, why did Lortie and friends fail to identify the company intending to acquire QRM?  Why the big secret?  Is it because that anonymous company may ultimately end up acquiring QRM in bankruptcy court,  for pennies on the dollar of real asset value, and thus the imperative to hide its identity...or is that anonymous company somehow directly linked to the anonymous party that provided the $550,000 debenture?   

3.  Why would the company announce plans to move QRM onto a junior stock exchange, PLUS, the announcement of a new patent,  only days ahead of entering it into bankruptcy court?  Were those ploys to pump the stock in order to allow Lortie, plus friendly insiders/funds, a chance to exit their QRM equity positions, ahead of the filing?

There is an amazing stink hovering over this entire QRM matter and it all adds up to the real possibility that Lortie and his associates have colluded covertly to steal QRM assets for mere pennies on the dollar.  That a debenture holder with first claim on QRM assets, ahead of all shareholders, may be able to acquire the entire corp for only $550,000, stinks to high heaven.  

Especially strange is the fact that the potential acquirer of QUEST was never identified. Was there ever a real potential acquirer in the first place...or was the story invented simply to allow sufficient time to elapse in order that the debenture holder  would be able to exercise the right to seize QRM's collateralized assets in bankruptcy court?
 

ALL intidcators point to fraud of the most egregious kind, particularly with regard to failing to inform common shareholders of the identities of the debenture holder and the corporation alleged to have bid for the company.  Moreover, it appears to be fraud perpetrated against the Quebec taxpayers who placed funds into QUEST, yet have reaped nothing except losses.   If there has been any collusion between Quebec politicos and QUEST management to defraud Quebec taxpayers,  and if that collusion can be empirically verifiied, then that also should result in felony charges against the conspiring politicos.
 

As per public corporation reporting requirements, establishing anonymous entities to defraud the shareholder is entirely fraudulent,  and on that basis alone, Lortie and his crew are in violation of Commission regs.  If the QUEST common shareholders are wiped out, I will be shocked if one of the holders does not step forward and file felony charges against Lortie and QUEST management, along with a civil class action for full remedy.   Even if a holder has a mere 10 shares of QUEST, he/she is allowed to file pertinent charges, both criminal and civil, in order to force a remedy and, one way or another, Lortie and his buddies MUST reveal the identities of the debenture holder and the corporation alleged to have bid for QUEST, since, to reiterate, hiding their identities is patently fraudulent.


It seems that a major QRM equity holder and/or alliance of QRM retail shareholders need to hire a forensic investigator to determine if Lortie purposely destroyed the QRM shareholders for purposes of self-dealing, on his own behalf, and/or on behalf of the mystery debenture holder.

Any future class action aimed against QRM Board of Directors should be certified in Ontario.   Reason:  Ontario offers massive, multi-million dollar, whistleblower awards to those willing to step forward and testify against corporate self-dealing, whereas Quebec does not offer notable financial rewards for whistleblowers

Bottom line:  for many years, QRM management has alleged that heavy rare earth assets are enormously valuable, particularly since China holds a monopoly, and is in a position to cut off global supply in an instant, either willingly or via some natural catastrophe.  If QRM's assets are genuinely so valuable, then how can QRM management have allowed the entire QRM asset base to be pledged against a mere $550,000 debenture, unless QRM management received some kind of covert benefit from the debenture holder, either in the past or ultimately in the future?

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