RE:RE:RE:QuestionShylock,
Yup, a collection lawsuits is a real possibility that could be coming to EO's way, following the results of the Special Meeting (only 2 weeks away). If the shareholders are upset enough with his activities (crazy or not) to willfully damage AZX then they would support a class-action suit against him with a huge punitive damage.
All, that would be required is for major shareholder (e.g. xyz) to lead the charge. Shareholders agree with the lawsuite can sign up to join the case.
In parallel, AZX will need to raise some fund, just a minor one, for general purpose use, including some drilling and legal expenditures. I don't know if it is possible for them to join the class-action superheaded by a major shareholder, since I am not a lawyer. They could presumably have a separate lawsuite, and let the judge decide if the cases should be merged into one?
The financing does not have to be a PP, it should be opened to all shareholders (include EO, if he wants to participate)
As an example, let's say that AZX proposed to issue 100M units (1 shares at 0.06 and 100M wts at 0.09 for 2 years). The take-in would be $6M (with a potential take-in of $9M 2 years later), if the SP recovers nicely. THe SP recover could be faster, if there is a bonafide good offer coming in. The dilution is not that bad in this case, ~16% for $6M.
Let's assume that ES and Sprott Inc, would take 10.23%, or 10.23M unit, AEM 8M units and AZX United over 10M units, etc...This is just like "crowd sourcing", and we don't end up spending too much money, since it's a small percentage of your total holding. But at $0.06/unit that would provide the confidence to the SP performance, and the current 0.04 would quickly become history.
It's the general idea. I will let you fresh out the details or alternative options.
A defence fund of $6M seems like good enough for the situation. This "defence" fund could certainly be use in a good offence as well, as the sports people say. But this principle is embedded in the writing of Sun Tzu (the Art of War). Some martial arts emphasize attack over defence: "the hand which strikes also blocks" in a maxim used in Wing Chun (a style of Kung Fu). Perhaps, ES should spend sometimes in a Shaolin Temple. As well, Peter Gundy should read the "the Art of War". May be, he already did, since most business schools (and military academies) include the reading of that book as part of the curriculum.
Just speculationg folks, while we wait.
GH
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Shylock wrote: GH - EO is already doing all the damage he can through his many layers of lawyers. What he apparently does not see coming is collective and individual law suits brought against himself for damage to the company and to the share price, both of which are damages to the shareholders of the company. It is a good thing EO appreciates attorneys as he could well be spending a good portion of the remainder of his days engaged with them. His gross malfeasance and damages caused should not go unpunished.