RE:RE:RE:RE:RE:KWG management circular and voting forms Hey GM... thanks for the invite... have not posted ina while but have been reading. Here is a bit of what I think.
For the last few years I have been quite certain of the manipulation of our stock price if for no other reason than to try to force KWG into bankruptcy. But somehow Frank has created a structure and financial offsets that have withstood every contrarion pressure tactic. I sense that he saw a potential hostile takeover long ago. In the times of the Spider / Cliffs / KWG round table
In recent times his actions have given me the impression that he was setting up a quasi intrinsic “poison pill” for protection by 1. exchanging good and services for shares and warrants and adding expertise to his management team, 2. Raising the float disproportionately compared to Wyloo’s/Noront’s purchasing power of KWG shares, which is limited due to the potential of raising the price as a consequence . It means they are forced to take much longer to accumulate shares up to 10% 3. Raising the value of the company by securing assets and relationships that maintain share price support… i.e. deal with Fancamp, development of the patent, deal with FNs on the RR, as well as 4. private placements for operational reasons.
As for today’s trading, I suspect that pent up anticipation of news, created a knee jerk reaction which is somewhat justified given that this news is probably the first in a series of dominoes to fall. I also suspect that backroom discussions have led to the decision to execute this magnetotelluric survey… big pockets other than Wyloo have been waiting for a few things to happen to de-risk this investment in their own eyes… 1. Further confirmation of the resource in ground, 2. Stability in the relationship with FNs, 3. A global increase in demand for chromite 4. Political unrest pitting Russia/Asia vs NATO 5. Govs both Can and USA showing interest based on necessity (point 4.). I do believe that the Canadian Gov has finally come to the conclusion that playing fair doesn’t work when you are dealing with entities that want it all and don’t care about ethics or morality. The take over of Noront by Wyloo has opened many eyes to the reality of "legal" but unethical hostile take overs. I’m glad that they have decided to protect Canadian assets by directly investing in them. (2B dollar government investment fund announced last month, which in itself will not have to reveal or justify its transactions)
Finally I think that this latest news potentially could trigger the long progressive movement in the stock price which we have been anticipating for the last 13+ years. That in itself could trigger a take over offer; low ball won’t work because of the shift in voting power back to those who are loyal to the company (increase in the float and Frank's control over a large number of shares)…. And if a reasonable offer is brought forward, then a bidding war is possible between multiple entities with deep pockets… in that climate, the winning offer would possibly be very significant… north of two dollars, and it might not even include the patent or the transport corridor technology. Those two stand alone in both their value and in whom they would attract as a potential buyers. I also think that there exists a strong possibility that we won’t be taken over but rather end up in a PPP (private public partnership) with or without a new deep pocket entity.
Apologies for the long rant but I have difficulty making assertions without providing some attempt at substantiation. Again I must reiterate to the readers that I have no privileged knowledge of the KWG workings or plans. Everyone must rely on their own due diligence and risk tolerance.
GLTA KWG longs…very exciting times ahead. Pear3