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Western Resources Corp T.WRX

Alternate Symbol(s):  WTRNF

Western Resources Corp. is a resource company. The Company is mainly focused on the development of its Milestone potash project (the Milestone Project) in Canada owned by its subsidiary, Western Potash Corp. (Western Potash). The Company owns a 100% interest in the Milestone Project located in the province of Saskatchewan under various property leases. The Milestone Project includes approximately 84,557 acres of Crown held mineral leases and 65,305 acres of acquired freehold leases. The Company is constructing Phase I of the Milestone Project. The Company also invested in real estate development projects in the Greater Vancouver Area through limited partnerships. The Company completed the drilling of 11 potash exploration wells on project property, completed several hundred-line kilometers of 2D seismic study, and conducted a 3D seismic study during the project exploration program. The Company has no mineral production that yields any revenue.


TSX:WRX - Post by User

Bullboard Posts
Post by HuntNGatheron Mar 08, 2019 12:29am
119 Views
Post# 29459448

So if Tairui already owns 51% stake....

So if Tairui already owns 51% stake....They are givent the standby option to buy some or all of the rights to get the assured treasury boost of 11.212M.

Theoretically, that means if NONE of the existing shareholders did anything and bought shares at the discount, there would be a 75% ownership stake for Tairui when this was all done if I understand it correctly.  They, as 51% owner, will essentially be in a position to control the price of the Rights and will be able to ensure that they can pick up whatever they want in this issue.

I guess part of me thinks that they are very certain that this is a good investment at this price and that is why they are going along with it.  Part of me thinks they are trying to fleece the lambs and take away the rights (and create massive dilution) using the power of their 51% stake in the company.
Bullboard Posts