AZX - New direction Just went off grid for a few days and look at what has happened back at the ranch.
1. Special Meeting results with 177Ms blue versus 113Ms yellow. This is a bit of a surprise, since it was expected management would have a larger margin. Anyhow, it was done and EO is out (hope that he would not let his other shoe drop).
Notes: Vote turnout was 290M/478OS = ~60%; blue has 61% and yellow 39%. AZX has 43.5M votes or 15%. A switch of 15% would create a different outcome, i.e.46% versus 54%.
2. It was not a suprise to see Geis resigned as director, since he was sided with EO in a crutial vote (4 against 2). So, they have 5 board members.
3. With Henry appointed as Interim CEO with a mandate stated by Gundy in the NR: “As we continue to move forward, Walter Henry, previously the Chair of the Special Committee is fully committed to executing our Board of Directors’ plan as it relates to the new corporate direction which includes non-dilutive financings, a refocus on our core assets, and a new management team.”
The BoD now has only 4 independent directors. Two more can be appointed. We'll see how this would unfold. My guess is that one seat would be reserved for a major shareholder (most likely AEM) following a PP. The other seat is also available (for ES, if he's interested, just to keep an eye on things).
4. Next, A PP of about $7M (max $10M) will be arranged. AEM would take a large slice to go over 10% (to claim one seat at the Board). This Financing must be done to fill up the treasury, unless they could sell the on-core assets at some good price. They need to carry out the work, or at least the key part of it, (total cost ~$5M) recommended in the 2018 Technical Report. Sending out the un-assayed samples must be done immediately (cost less than $100k). In-fill drilling is next to gather the "low-hanging fruit" when they redo the Technical Report.
On the management side they have almost all key personnel
- Henry, as Interrim CEO
- CFO, Miranda
- VP Exploration, Berthelot
They would need a competent IR person to handle investors inquiries, and update the website. Henry cannot do this by himself.
GH