Ask Me Anything Session with EO - Post MortemFolks (participants of the session)
I just start a new thread above for pooling our collective understanding together with a short headline for each and a summary of the question and answer from EO, and your assessment/rating of the answers, i.e. if the answers are satisfactory, or not). If others want to have a lengthy discussion perhaps it could be taken outside of this thread. Let me start with a couple of items. Feel free to add your id and comments.
1. AEM Support (GH, plus other): It has been reported that EO has said (on the phone or in various public/private meetings) that he has the support (8%OS) of AEM (and 2 other smaller groups). But his answer was "he believes that he has the support from AEM". In my opinion, "his belief" is not the same as "he actually has the support from AEM". My gut feel is he does not have this support. His family, wife, children, parents has a total of 8.3M (CEO.ca) +5M = 13.3M/480M for OS = 2.8%OS, so Management figure of ~5% is not too far off. However, with respect to the skins in the company, 13.3Ms x 0.045/s = $590,000 which is not that much compared to the salary and bonuses/opts colected during the last 10 years.
2. Dan Palikrousis, Mary Vorvis brother, (GH, plus others): How much commission he would have made if the financing was successful? The answer was the options were capatible with indrustry practice. Why not just spell it out the options given as commissions (industry practice would be 6% of the total value of the financing value? If so, it would be lucrative). Note also that DP contributed funds toward the cost of this proxy fight, and his name, along with EO?, are on the lawsuit against Gundy, Henry, O'Connor and Patil. Still don't quite understand DP's role in this saga. Presumably if EO won the proxy fight he could resurrect the equity financing scheme (in fact he give some hint in one of the replies).
3. All $20M returned (GH): This is a clear cut answer, all money, including the $5M mentioned by management, was returned to prospective investors (private, no-name investors).
4. Sale of non-core assets: EO said that the non-core assets would not get anywhere near his $20M. But, we are talking about 1Moz AuEq, rather than the NSR with AEM that AZX just sold, or the 300,000 PRB shares (does AZX still have them?), or the NSR with PRB for the JV property.
5. Dilution from the sale of the entire company: I would leave this to the other participant who has some question about EO claim "dilution of 80% if sold to a $1 company" (presumably it's PRB). I don't know how he got that dilution from a total sale. Rumours said PRB had an offer on the table for 12-13 cents/share.