What next?In the previous post I have hi lighted the conclusions of the judge in the matter. Most notably the action of Karnalyte against Phinney and Brown is stayed until Karnalyte pays up. Does that mean that the case will continue after payment is received? Maybe, maybe not. as indicated in the following quote:
"These allegations of significant wrongdoing by Mr. Phinney were unnecessary in terms of the issues in the application. They did not need to be addressed in the reasons for decision, and were not proved by the evidence before me."
My questions to anyone who has an answer:
Is there other evidence not presented that may lead to a victory for Karnalyte against Mr Phinney and Brown.. (I think it is unlikely. The alligatiaons of "wrongdowing" by Mr. Phinney are laid out in letters to shareholders and in the courts. It seems no ruling has been made but it looks like based on this rulling any claim will have little chance of success.)
Will the Magnesium project; that was proposed by Mr. Phinney and which I believe Mr. Brown believes to be the only value proposition at KRN, be forwarded, by the board, as a project some time soon?
Will the board, former board memebers and the CEO and former CEO stop legal actions agianst one another and move this project into something useable or valueable? ( Not likely)
Will the current board recognize the size and representation of the current board is unhealthy and get other board members presented to shareholders for election in order to move the company forward? (not likely)
Will RF heating be used to dramatically reduce costs and CO2 emmisions? (maybe)
Will a private placement be proposed to raise needed cash? And will it be open to anyone? (The impact of a capital raise to the ownership percentage of GFSC will be immediate and will take away their stranglehold on the board and direction of KRN)
Is the CSG interested in $3 million or in getting value for their investtment? (It is hard to tell motives, but they say they are all about value creation. Of course if they continue their legal action it forces GFSC to do a capital raise, which changes the ownership and control of the board. Shares are not widely traded and any attempt to purchase on the open market will result in a dramatic increase in share price and will be unsucessful in changing any board composition. A capital raise will force the hands of GFSC to change the board or to buy in more shares).
Conclusion...
As always the little investor looses. We may be tempted to sell our shares and since no investors are buying the value collapses. I actually hope for a Private placement capital raise available to acredited investors who can change the direction of this company away from the majority control by GFSC...
HOWLONG!