RE:Farmer LogicErnest, it might be a simple case of management cutting expenses to the bone and managing the remaining treasury as best they can, as approx $5 million will likely remain after the upcoming Special Meeting costs, and associated legal bills to defend the csg smear campaign are paid for.
The AGM in a few months time will likely cost another few hundred thousand, as I expect yet another proxy battle will fire up, once lessons are learned.
At one time management stated it would cost approx. $500K to maintain the company on care and maintenance, and that might be the only option remaining, if this corporation hopes to survive, as I just don’t see any deep pockets lining up until all the peripheral noise is resolved, and there is a lot of noise. Liabilities continue to increase as they are now above $3 million, and there are still several outstanding lawsuits on the books from previous Karnalyte Executives, not to mention any outstanding cost awards yet to be determined by the courts for the Originating application.
Mr. Wheatley is seeking $450,000 for past compensation, Mr. Ma is seeking $728,000 for previous compensation for change of control, and I have no doubt the Mr. Phinney will be in line for a huge payday as a result of the libelous Letter to shareholders intentionally made very public by Karnalyte in May 2018.
It would not surprise me if Mr. Phinney was awarded a 7 figure award as his credibility and reputation both professionally and personally would have been severely tarnished as a direct result of the disgusting Letter to Shareholders publicly released by Karnalyte in May 2018.
Mr Phinney has already been proven not guilty of the accusations made by Karnalyte in the Originating Application, and the May 2018 Letter to Shareholders is a textbook example of an egregious act of libel by a corporation against a shareholder, and in those cases the falsely accused generally get paid well if it goes to court, and I have not seen anything to suggest Mr. Phinney has secured an executive position elsewhere, very likely due to the corporations very public, false accusations made on May 2018
Lots of money will be spent on either settling these outstanding lawsuits, or paying huge amounts in legal costs to fight them, and then paying the settlement awards anyways.
Might be cheaper to bring all of these guys in, agree on an acceptable settlement, and put this chapter in the rear view mirror, as this type of publicity is not a good look for the company’s reputation when so many previous execs are suing the company.
Pick your poison, but settling these lawsuits outside of court may be the wiser, and much cheaper option!
The Board therefore unanimously determined (including by a senior executive of GSFC who is its representative on the Board) to suspend all activity in relation to the Wynyard Project, other than the minimum required to maintain title to the Wynyard Project, secure the site on a care and maintenance basis, and otherwise preserve intact the Wynyard Project. It is expected that costs to maintain the site will be approximately $500,000 per year. https://www.marketscreener.com/quote/stock/KARNALYTE-RESOURCES-INC-7012144/news/Karnalyte-Resources-Receives-Unwarranted-Demands-From-Robin-Phinney-and-Gujarat-State-Fertilizers-20255183/