TSXV:TRL.H - Post by User
Comment by
MelnykWasRighton Feb 16, 2020 6:18pm
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Post# 30698022
RE:RE:THis is/was a horrible move.
RE:RE:THis is/was a horrible move. Machiavelli here!
A company puts out a press release that essentially details the following:
- We are on the verge of insolvency
- We looked at a pile of options by special committee(we won't tell you what/who they are) and decided it was best to give one person 85% control of the company (if they gave him 90% they would have been delisted by the TSX) and dilute your shares by roughly 300%
- We feel that this solution provides the best shareholder value given the circumstances (trust us)
- We're applying for a shareholder vote exemption so they have no say in what we are trying to do, and they will definitely no longer have a say about anything once the deal we are proposing goes through
- We are not being the least bit transparent in our dealings with our shareholders and need to rush this through now because we just returned from doing things more important than finding other investors in our venture for the last 8 weeks or so. (sorry for procrastinating!)
- As a result of all of this, we are undergoing a review to see that we still meet the listing requirements for the TSX, which means it is quite conceivable that our shares will become delisted (I'm certain most will understand the implications of having the shares delisted)
Given the circumstances Contrarian is suggesting you fight dilution by buying more shares at a discount compared to what Ian wants to pay. Let me just imagine that for a moment.............
Thanks but I'll pass this time around. Maybe if we dig the hole deep enough we can come up in Wuhan and sell them on the dispenser technology! My being told to give my head a shake by the person who is suggesting buying more shares in a company that has publicly declared they are on the brink of bankruptcy is priceless.
Fight dilution by sending them all emails and asking to see what the other options were (if there were any). If you feel you want to vote on this matter, let them know that as well as it is your right as a shareholder.
Does anyone remember the old Trimel poison pill clause they had regarding takeover? I'm trying to find it and what it entailed exactly. I realize it won't apply in this case, just curious more than anything.