kynarr wrote: @CeFaci:
SENT. We all should write them.
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Good day,
In reading the Complaints Brochure on your website, I notice a focus on ethical and professional standards.
Over the past 3 months, the management of Euro Sun Mining (ESM.to) has sold millions of shares on the open market through other companies they own, namely black iron inc. (BKI.to) and potentially others. They did so the day after releasing the most significant news release (Nov 12 2018) for ESM to date, which is the license for a gold mine in Romania, holding over 10M gold oz eq. This news release was expected to increase the share price dramatically, after which an updated PEA would come in Q1 2019, following which further financing would be required in order to continue funding the project. The plan, has had been understood by investors, was for management to release subsequent such positive news in order to finance the project at a share price that would dilute us as little as possible, therefore making the project most attractive and feasible.
As of Jan 29 2019, ESM's management team have now launched a market financing that will add 50M shares to our current float of ~57M shares, an effective 50% dilution of current shares. This financing is being offered at a time where the share price has most been eroded, at a time where many positives news releasing are near being released, and especially, at a time where no such big funding is required. The management have been completely silent since Nov 12, despite many shareholders contacting them repeatedly to inquire as to the happenings.
It appears very possible that the management of Euro Sun Mining has purposely sold millions of shares on the open market, then stayed silent, then avoided releasing subsequent positive news, in order to justify making a market financing which they will largely, if not entirely, partake in, in order to grab as large a portion or the company as possible. I cannot say if that is legal, but this to me is certainly immoral, unethical and unprofessional.
In addition, the management already went through a highly dilutive financing on Nov 8 2018, 4 days before the license being announced, which is also of highly questionable timing.
Put together, these actions have not only eroded share holder value, but have also greatly diminished trust in the management, and interest in the company, as it is now understood that the management will go through ANY means in order to pocket more money for themselves, even if it means everybody else loses in the process.
I would appreciate an inquiry being launched into these matters. Many investors are currently getting together and we are looking at ways to address the situation rapidly, as the financing is expected to close on Feb 13. The most significant catalyst for this project was granted on Nov 12 2018. Most investors are down a very large % since. This is, again, highly questionable, and I believe amply justifies an investigation being launched.
Here is a link to the Jan 29 2019 news release: