Post by
Malpeque2 on Dec 24, 2019 9:32am
Dear Mr. Mullen
Get the rocks out of your head. We are trading at a valuation of about $60M Can.
We hold shares in Abitibi Mining worth about $90M Can. using a valuation of about $16 per share.
I have followed you and GZZ/RZZ for about 4-5 years now. You have done ZERO to work to reduce or eliminate the discount that GZZ trades at relative to RZZ. Yet you are an officer/director of both companies and GZZ is supposed to be the "control" shareholder of RZZ.
Even RZZ thinks it shares are undervalued, and uses cash to buyback stock. GZZ would then be a discount on a discount as we trade about 33%% below NAV based on RZZ alone, giving NO VALUE to the other projects and equity positions we own around the gold industry.
IMO there ought to be a way to structure a transaction that is relatively tax free to reduce or eliminate the discount between GZZ/RZZ.
Certainly we could use available cash and the sale of some RZZ shares, on the margin, to buyback stock in GZZ in an issuer bid. YOu have FAILED Corporate finance 101 to have not proposed doing this over the past 4 years while the discount has persisted.
You could just make a distribution of RZZ stock to GZZ shareholders, and then we can all go on our merry way without you and the GZZ corporate "oppontunities" you outlined just the other day in your company update, although GZZ would remain as a STUB or SpinCo public opportunity for those shareholders who wish to continue to be stuck with the G&A costs of keeping all your various public SpinCo's in business. This would be ALL or mostly TAX FREE to your long suffering shareholders.
Finally, a stock for stock merger of the two companies, with or without a SpinCo could be done as you and a few others effectively are control persons of the two companies. THis would also be all or mostly TAX FREE to your stockholders.
What irks me the most in all of this is that the BOD of GZZ and RZZ pander to your foolishness in not moving to implement any one of these over a multi year opportunity.
Someone involved in this combined company GZZ/RZZ BOD or management should have enough business sense and BALLS to stand up and propose the OBVIOUS.
Total failure of good corporate governance on behalf ot the GZZ stockholders.
Merry Christmas to all of you in Candyland
Comment by
blueray on Dec 25, 2019 11:05am
You got my vote The thing I don't understand is why he doesn't let Ian Ball run both RZZ and GZZ.
Comment by
severeanalysts on Mar 19, 2020 2:03pm
MULLEN IS A SEVERE LOOOSER HE HAS NOT GOT THE FUNDS TO BACK HIS OWN STOCK AND DOES NOT GIVE A SHHHET ABOUT YOU AND ME WILL NEVER BUY THIS AGAIN SEV 3, 5 AND 6 Toronto Ontario