Great Lakes Graphite Inc GLKIF

Great Lakes Graphite Inc is an industrial minerals company focused on bringing carbon properties and products. It focuses on the manufacture, marketing, and sales of graphite products. Its product is categorized in types: graphite and advanced carbon products. Some of its natural flake graphite products are Micronized, High purity micronized, Ultra-high purity micronized, Spherical purified, and Coated spherical purified. The advanced carbon products include ALD-Coated graphite, Graphene, and Carbon composite materials.

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Great Lakes Graphite Inc > Gorman/Board Resignations - Bankruptcy

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Comment by ElliotFTon Feb 18, 2019 12:30pm

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Post# 29379214

RE:RE:Gorman/Board Resignations - Bankruptcy

I guess the market agree with you Florida. There’s now a 760k bid at 0,03. Haven’t seen a bid that big for a while.

Floridas2000 wrote: You bring up some interesting points. I will assume that you are somewhat connected to Mr. Gorman. Some points though which are incorrect. I know FOR A FACT that a lot of investors were not pleased with Mr. Gorman being the CEO of the company. The one that was most involved in the company was Mr. Ferguson. Even at Matheson there were operators there that prefered to interact with Mr. Ferguson than Mr. Gorman. The fact is that Mr. Gorman was actually preventing people from investing in Novocarbon. The fact is that Mr. Ferguson was told this by various investors for some time now and chose to keep Mr. Gorman as CEO. I can only speculate at the reason but I personally believe he did so out of loyalty and respect for Mr. Gorman.

Now in terms of the financial situation your points are valid and it's well known on this board the contributions from the Ferguson family. That does not mean they want to bankrupt the company, it means they're invested in making the company succeed. I noticed during the restructure that Mr. Ferguson became the CEO of Novocarbon US and was happy for it. It made sense as well since Mr. Gorman is a mining guy and Matheson is Canadian based. Connections in the US are mostly through Mr. Ferguson. I had a conversion with one of Novocarbon's partners a couple years back as part of DD, actually two of them to sorry, and they did not mention Mr. Gorman once. Mr. Ferguson is the face of Novocarbon.

With respect to Mr. Lane and Mr. Murphy you have to understand what they were bringing to the company. Mr. Lane was brought in to build up governance. Mr. Murphy has experience in financial reporting and compliance. GLK has switched direction on numerous occasions and their skillsets were no longer needed. Now they have a battery / storage expert and an IT man who has experience building up small companies plus they have connections. No disrespect to Mr. Lane and Mr. Murphy but they made the right move.

Let it go. It's possible the company goes bankrupt, it's also possible they take off. We shall see but don't read too much into Mr. Gorman leaving. The current board and management is the best they've ever had and Mr. Gorman is strong enough to find another mining job soon.

smallcap1967 wrote:
In order to understand the resignation of Paul Gorman (former CEO) you have to look to the events of August 2017. The recent document release (as a result of the OSC) specifically the secured debenture with F2 capital (January 10,2019 - sedar filing), the loan between NovoCarbon and GLK (December 27,2018 sedar - filing), the incorporation documents of NovoCarbon (December 27, 2018 - sedar filing) , as well as the August 2017 press releases allows us to do that.

During August 2017, NovoCarbon (US) was incorporated by Paul Ferguson, GLK raises 2 million US from F2 Capital (Ferguson Family) in the form of a secured convertible debenture, and, Greg Murphy and Richard Lane immediately resign from the board of GLK.

The problem with the transactions is the fact that NovoCarbon US shares are held in trust by Paul Ferguson “Until such as point as the shares may be transferred to the company’s beneficial ownership” To this date they are still held in trust (June 2018 financials).

On May 19 2019 GLK must repay 2 million US (plus interest) to F2 Capital (Ferguson family) and this creditor is also holding NovoCarbon in trust through Paul Ferguson. Is the repayment of this debenture a requirement for the NovoCarbon shares to be transferred?

In either case no one would disagree that all activities for the company are conducted out of NovoCarbon US, and furthermore, it is inevitable that GLK defaults on this secured debenture. The only question remaining is why should the Ferguson family not bankrupt GLK. They get a tax loss, and in all likelihood and get to keep the private company NovoCarbon US as well.

Note: The Ferguson family is owed other money and is the only reason GLK lasted so long. I understand why the secured debenture was structured this way and appreciate the efforts they have gone to. However, no investor will touch this company.