1. You said: "Hey GH -- first, I was unable to retrieve the article you wanted me to read. I would have very much liked to have read it. If you're able to maybe you could pm me a copy. Tks."
Which article, the one on SunTzu, or Jekyll Island?
2. " They don't want to risk potentially going to jail and/or pay a hefty fine if alexandria brings evidence to the Ontario Securities Commission (OSC)."
Did the BoD already report some illegal activities to the OSC? A threat of a lawsuit is equality effective (sort of belongs to "deception" strategy = keep the enemy guessing).
3. The NR of 28 March 2018 showed that EO equity financing was based on a low share price ($0.03 -0.035/s) and wts @~$0.02. Among other things, this is a really a poor price (~$20M to sell a big chunk of the company (current Cap ~$40M). Everyone would clearly see this poor deal. Actually, the BoD has not authorized the deal and has rejected the deal when EO asked for authorization.
But, if these share and exercise prices (from $0.02 - 0.035) were used to compared with the current offer(s) on the table (we don't know how many offers the Special Committee has received) before the release of the updated RE for Orenada, then it would not be a fair comparison, since even the current SP at $0.09/s is better than that. So, is the BoD trying to show shareholders that they should consider themselves lucky to get some prenium over the current price of $0.09/s, say a 30-40% premium?
A better way to do that would be
- to let the equity financing proposed by EO sit on the side. Just don't discuss further, since the BoD has rejected this scheme (not serving the interest of shareholders).
- release the updated RE for Orenada, present the various parts of AZX assets and evaluate each part based on their merits (location, geology, quality of the ore, etc..) and come up with a proposed value for potential bidders to put in their offers. Then, the BoD con pick and choose and recommend the best one(s) for shareholders to vote on.
Cheers,
GH
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goldopportunity wrote: Hey GH -- first, I was unable to retrieve the article you wanted me to read. I would have very much liked to have read it. If you're able to maybe you could pm me a copy. Tks
Ok. Alexandria IS making an "offensive" play, just not the the court action you want to see.....yet. And they're doing it rather brilliantly imo. Rather than litigate a case that would be quite expensive, potentially take years tied up in the courts and adversely affect the sp, alexandria is methodically having EO and his bandits see the error of their ways.
Yesterday's nr from alexandria was a humungous shot across the bow in that it laid out point-by-point what EO has done to undermine OUR company. Alexandria even sought advice from an independent third party financial advisor (EO hasn't) who deemed "it was appropriate for the Company to explore a possible sale or merger" instead of EO's proposed unauthorized financing which would have diluted shareholder value. I'm no lawyer, but I'm pretty damn sure that the Special Committee's legal advisor, much-respected Bennett Jones LLP, has advised the SC and the BoD that EO doesn't have a leg to stand on. In other words, we would prevail in the courts.
Imo, the release of yesterday's nr was a scathing indictment of EO. It strategically laid out the whole stuation for all to see. Every one in the mining industry has probably read it. The guy's basically toast now. I mean, would you hire EO, I ask rhetorically. And I would be of the opinion that EO's partners will probably want to distance themselves from him now that they know that EO is probably perceived as toxic. It wouldn't be a stretch if they in fact start legal proceedings against EO. They don't want to risk potentially going to jail and/or pay a hefty fine if alexandria brings evidence to the Ontario Securities Commission (OSC).
To sum up, yesterday's nr from Ian Robertson of Kingsdale Advisors was strategicaly brilliant. I think it personified just how mighty the pen really can be in confronting an enemy of our company. So we'll see what happens. I'm no lawyer -- I'm just giving my own humble opinion.
goldopp