Mountain Province Diamonds Inc T.MPVD

RE:RE:RE:Five cent dividend

[Wisdomwithage]

Hey Terrebonne,
 
Your strategy of paying down the 8% bond issue rather than paying an immediate dividend is actually a valid argument.  Just a couple of comments to add:
 

• dividends are not tax deductible for a corporation, and can only be paid out of Retained Earnings, in other words out of net profits or accrued profits.
• any interest on corporate related debt represents a tax deductible expense for a corporation (which includes the Bond issue). This would frtee up more cash allowing for an accelerated paydown of our Bond debt.
• if dividends are paid, then the TIGs not only would be receiving dividends on their tens of millions of MPV shares, in addition to the  8% on the lion's share of the bond issue they took down
• it seems pretty apparent that the TIGs, and more specifically Desmond along with most if not all the Directors, took down almost the entire Bond issue before it was made available to outside parties.  Why? On the morning the Bond issue was announced by MPV, I and several other investors who are friends and colleagues of mine - and I'm sure many other retail investors - called our brokerage firms, instructing them to purchase some of the debt issue for us.  Within minutes they were back to us, saying it had already been sold out.

Like yourself, and many other retail shareholders, I have a significant position in MPV, and much as I'd like to receive a dividend I'd rather they pay down the Bond issue as quickly as possible so that we have a clean balance sheet, reflecting no debt. That could be done in less than 2 years if OUR Finances are handled properly.
 
Hopefully by then we might have a new BOD that reflects the interests of all shareholders rather than a certain few.

Cheers,

Brit