OREA - Time for Shareholder Composure I find all the back and forth amongst the OREA traders interesting. However, sometimes I wish that posts would include just a little more detail and reasoning for the beliefs expressed. I realize that the stock is one of potentially a number that a traders will hold, and that often in-depth knowledge of a said stock is not required to make momentum-based moves. For me, I just like to learn from and or be challenged by ideas and objectives expressed.
The overall opinion on this board presently, seems to be that OREA will be bought out and that the most likely candidate will be NG. Some now suggest that such an attempt will happen sooner rather than later; in fact, I think one opinion is next week (who knows).
The reasons NG would attempt such a very high risk move at this early stage include:
Reducing the publicity and hype that would occur (especially from environmental groups) when making such a bid with the reports/apps already submitted.
Trying to sideline any publicly owned entities (with exception of maybe the Chinese) due to the permit risk to shareholders.
Take advantage of an OREA sp that hardly values the company’s inground gold oz worth due to its being presently ‘locked’ away potentially through 2022 (even for good).
Claiming to OREA shareholders that a premium of 50-75% on 20 day moving avg is extremely generous, and moves all the risks such as cited above from present OREA shareholders to NG.
Trying to take full advantage of the trading hype in the OREA stock already and in the near future, in an attempt to up the NG shareholding gain to 20% and the announcement of a hostile takeover going direct to the shareholders and bypassing the OREA management.
Etc.
Yes, there are certainly reasons for such a buyout attempt but OREA shareholders should, IMHO, beware if they see such a move and then decide to sell early. Remember, the OREA ‘shareholder rights plan’ gives a 3-1/2 month window for acceptance of any tabled offer.
However, if NG were to gain a controlling sharehold interest early, they could drive through their low bid offer. Keeping that 3-1/2 month window open increases the likelihood of new events upping any original offer (see Cardinal Res'). Such increases would be missed by the early sellers (unless NG offered to pay already selling shareholders the new difference in an offer should it occur in the future; may be they will, may be not?).
Clearly, I am long term holder and would vote against any offer made until the reports/apps, etc., have been submitted and we are well into the wait period. I am asleep until we get above US$ 0.90. There are so many catalysts to come that will drive this sp through 2021 into the first half of 2022 (I have posted on these previously).
IMHO, don’t let all the hype now surrounding this company lead to shareholders selling out way too early. NG is trying to thrive on this situation and have done it before in previous buyouts last decade. I have been on this board for years and based on all the posts now arising, we are in clearly a hyped environment.
Composure and solid DD is always the name of the game, but never more so than now for OREA short and long term shareholders.,
As usual JMHO
GLTA -
https://twitter.com/EarthsRare Columbus Gold Announces Adoption of Shareholder Rights Plan
September 27, 2019
Vancouver, BC, Canada, September 27, 2019 Columbus Gold Corp. (CGT: TSX, CGTFF: OTCQX) announces the adoption of a Shareholder Rights Plan (the “Rights Plan”), which replaces the previously adopted Shareholder Rights Plan that expired in March 2019.
The Rights Plan takes into account the takeover bid rules adopted by the Canadian Securities Administrators (the “CSA”). The CSA have approved some changes to the takeover bid regime in Canada, including that a formal bid must remain open for acceptance for at least 105 days, subject to the ability of the target issuer to voluntarily reduce that period.
The Rights Plan was not adopted by the Board of Directors in response to any offer or takeover bid. It is intended to ensure that all shareholders have an equal opportunity to participate in any bid for control of Columbus Gold and is not intended to prevent a takeover bid or secure the continuance of the management or the Board of Directors or to defer fair offers for Columbus Gold’s shares made by all shareholders equally…