RE:RE:Bad restructuring deal sunk Excellon, IMO Good points! No wonder why investors may believe this huge 'Transfer of Wealth' from Excellon Shareholders to Debenture Holders, Excellon's Officers and others was the plan all along. Logically looking at what happened here, why else would Excellon:
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Not allow its shareholders to vote for the other options available to pay off its only debt (Debentures) including the selling, leasing, optioning out and/or spinning off its assets, but Instead gave them only one option which was to restructure them(Debenture Restructuring Agreement, DRA) giving Debenture Holders over half the company's stock, controlling interest in the company and other considerations for canceling just C$10 million of its debt and leaving Excellon still with C$7 million of debt, no capital to fund anything, record low stock prices and vulnerable to foreclosure and/or bankruptcy?
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Not secure funding from Debenture Holders as part of this agreement to at least pay for basic operations and Kilgore's drilling program?
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Amend the original 2020 Debenture Agreement in 2022, changing the security from to 'Properties in Mexico' to the 'Kilgore Project', without shareholder approval forcing them to approve the DRA or lose their "Centerpiece" asset?
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Dilute its stock and its shareholders equity by increasing its outstanding shares from 22 million in 2020 to over 108 million today ( refer to link below), reducing pre 2020 Excellon shareholders ownership in the company from 100% to only 20% and causing them to lose controlling interest.
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Let the Debentures go past due, driving its share price down to as low as C7cts and then force a DRA on its shareholders that used these self created low stock prices as the bases for payment?
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Not pay off the Debentures in full when they were due in 2023 when its stock price was over C50cts and could have been done by selling 34 million shares of its stock instead of the 50 million shares and other considerations the DRA cost them just to pay off 60% of the Debentures?
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Not "unlock significant value for our investors from each of the jurisdictions in which we are operating” including spinning off Silver City as it stated it would do in 2022 which would of significantly increased its value and stock price over its 2022 high of C$1.49, dramatically reducing the number of shares that it would have to sell to pay off the Debentures in full and again eliminate the need for the DRA and the financial disaster it caused Excellon and its shareholders?
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Not release the positive 2022 Kilgore Drilling results until 2024 and after the implementation of the DRA when doing it before would have had twice the positive impact on Excellon's stock price (50% less shares outstanding) and would have also reduced the number of its shares required to pay off the Debentures?
- Have (2) of its BOD members resign the same time it announced it was in "advanced discussions with holders" on a DRA?
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Pay its CEO's compensation packages multiple time higher than their peers* even with it having the above issues, 11 consecutive years of net financial loses**, its market cap going down from its 2006 to 2020 yearly average of C$140 million(Refer to below link) to a low of C$3 million and its stock losing 96% of its value (C$5.40 in 2020 to C17 cents***) since 2020 alone when its peers stock prices represented by junior gold and silver miners ETF's GDXJ and SILJ were up 14% and 10% respectively?
Wow! I did not realize how bad this was until I started digging into it.
* Refer to my previous post on this board.
** The common denominator was Brendan Cahill who was Excellon's President, CEO, Chairman of the BOD and/or BOD member throughout this period of time and is still being paid by Excellon.
*** As of Friday 6/14/2024 market close.
Excellon's shares outstanding link
| In depth view into Excellon Resources Shares Outstanding including historical data from 1996, charts and stats. ycharts.com |
Market cap link