Recommended reading material reported Nov 14, 2018For any shareholders interested, there is some really revealing information in the November 14, 2018 Rights Offering Circular and Standby Agreement available on SEDAR.
Of note the then Krn directors, now CSG members were under the impression $ 3,864,907.94 was going into their Nitrogen project.
No wonder claims of misrepresentation by the then CEO were warned!
“The Company intends to use of a significant portion of the proceeds from the Offering on the Proteos Nitrogen Project. These expenditures include development work, as well as potential site acquisition.”
"Description of intended use of available funds listed in order of priority: Proteos Nitrogen Project Assuming 100% of the Offering ($)3,864,907.94"
“MATERIAL FACTS AND MATERIAL CHANGES There is no material fact or material change about the Company that has not been generally disclosed.”
It is always puzzling to me how a disclaimer like this is relied upon when clearly the directors who fully participated in the Rights Offering knew Karnalyte was already working with a well-established agricultural company (AgCo) interested in participating along side Karnalyte in the Nitrogen Project.
In fact, AgCo assisted Karnalyte in site location, and other activities directly related to the nitrogen project so how is that not material?