Sprott’s recent announcement of support for the Affected Board is a mere formality to what has in fact been a long-standing tie between PG’s activities and Sprott’s interest:
- December 2016: Sprott Capital Partners contributes $3 million to a $5.1M financing for AZX; this is their first financing and foray into Quebec· April 2017: time ES personally invests in AZX, purchasing 33M shares (or $2M worth)
- About the same PG is appointed chairman of the board at the request of Sprott
- Spring/summer 2017: Sprott sells 50% of its holdings in AZX driving the price down 30% to 6¢, during AZX’s biggest drill program in its history
- Sprott and PG complained to management about the selling; it was later revealed that Sprott was in fact the party selling
- Around this same time, Sprott brings a potential buyer to AZX
- Sprott has a holding in this potential buyer, and says it wants AZX sold at 10 cents
- Throughout summer and fall of 2017, Sprott and PG increase pressure for a sale, despite the ramping up of drilling activities: BUT only to this one potential buyer
- January 2018: the Board voted on the sale of AZX. Again, the only potential buyer in consideration was the same buyer, in which Sprott has a holding
- On the Record Date, ES still held 33M shares in AZX
- After the Record Date, a sale of 36M shares, in a pattern which mimicked the share sell-off in 2017, driving the stock price down 30% to 4¢
These are the facts. We think that there is only one outcome if you vote for current management: to sell AZX at a 33% premium to price. That means you’ll get 5 – 6 cents a share. We have an alternative: if elected the new board’s priorities will be to: 1) bring in the capital that was committed last winter but never accepted by the board; 2) restart the scuppered 60 000m drill program; and 3) complete the two year period of aggressive discovery drilling before seeking M&A partners. A similar strategy turned Alexandria’s then neighbour, Integra, from a $35M company to a $590M ($1.21/share).
As always, I welcome discussion on any of these topics. I do recognize that there are questions that I have not specifically answered. However, I would like to respectfully provide my position on this: for transparency and accountability, I have revealed my identity. I am more than happy to engage questions of those who will reveal their identity to me, so please feel free to call or email me with your specific questions and concerns. Please find my contact information, and more information about the Founders Group, at votefoundersgroup.ca.