RE:RE:Background on MagpieActually the property isn't been tied up but Smith tried to burn shareholders over the ownership .. Then a proxy war happened with Smith and 5 others trying to take over
Mr. Smith Paralyzed Fancamp’s Subsidiary, Magpie Mines, For His Own Benefit
One of the self-dealing transactions that Fancamp is aware of involves The Magpie Mines Inc. (“Magpie”), a subsidiary of Fancamp. As discussed on the January 19, 2021 and March 4, 2021 investor calls, a key component of the new management team’s three-pronged strategy is supporting titanium technology. The global titanium dioxide market is over $16 billion and expected to grow at 8-10% rate. Titanium (TiO2) is used in numerous products, such as paint, cosmetics, paper and pulp, and the use of titanium in 3D printing is expected to double to $1 billion by 2026. Magpie is a titanium-rich deposit and the Corporation is creating a new and simplified process to extract the TiO2, which would unlock significant value for Fancamp and its shareholders.
However, Mr. Smith caused Magpie to be incorporated with a capital structure that included a class of special shares (the “Special Shares”). The Special Shares carried the right to appoint 51% of Magpie’s directors and, as a result, the holder(s) of the Special Shares could effectively control Magpie.
The Special Shares should have been issued to Fancamp, but Mr. Smith issued them to himself and two individuals. This meant that Mr. Smith and the two individuals personally controlled Magpie’s Board of Directors.
Mr. Smith ultimately caused Fancamp to acquire 96% of Magpie’s common shares, but none of the Special Shares. This scheme conferred on Mr. Smith and the two individuals’ personal control of Fancamp’s almost wholly-owned subsidiary.
To make matters worse, Mr. Smith then had a falling out with the two individuals. This falling out has effectively paralyzed Magpie as well as the Corporation’s ability to unlock value from the deposit, and destroyed value for Fancamp’s shareholders.