Victoria Gold Corp VITFF

RE:RE:RE:RE:RE:RE:Santa Fe

[MVargas]

OCB1234 wrote:

phoenix_trader wrote:
Sadly VGCX is going to be given away by Orion for a fraction of value unless a professional IR team is assembled and/or the Board gets of their rearends.
 

If Orion was so eager to dump Victoria, they would have done so shortly after their shareholders agreement expired on 12/24. 

There was no chance that Orion would dump their shares into the market as the price would quickly fall to single digits and Orion is not prepared to give their shares away at that price.

The risk is that Orion might be willing to sell the balance of their shares at $17 or less to a takeout candidate at any time.  They were willing to part with several million shares at $17 last September and were authorized per the Prospectus to sell more at that price or higher, but the share price never got above $17 after that.  So Phoenix's concern is somewhat valid, but Orion has less leverage now than it once had.

Prior to Orion's sale of shares last September, they, together with Sun Valley, had a controlling interest in the company, but since their divestiture and Sun Valley reducing their position from 10% to 1.5%, they now own a combined 38% of the company - not enough for a takeover candidate to lock up a majority of the shares.

I can't imagine the BOD recommending a takeover offer of less than $20 and it would be a lot more difficult for a hostile takeover offer to succeed at anything less than that even with Orion's support.