Karnalyte Resources Inc T.KRN

While we wait for voting results......

[mdjbrown]

Heres a question for those in the know

After the 2018 Rights Offering closed, the company reported:

 “Of the 5,548,339 common shares issued under the basic subscription privilege, approximately 3,022,930 common shares were issued to persons who were known to be insiders of the Company before the Rights Offering, and 2,525,409 common shares were issued to all other persons."

"Of the total of 8,509,943 common shares issued under the additional subscription privilege, 7,265,767 common shares were issued to persons who were known to be insiders before the Rights Offering, and 1,244,176 common shares were issued to all other persons."



But how is that possible when GSFC themselves acquired 3,022,930 common shares under the basic subscription privilege and 7,265,767 common shares under the additional subscription privilege for a total of 10,288,697 common shares themselves 
 
Were none of the directors considered insiders before the Rights Offering, as previous Documents suggest all the directors were still with Krn until mid January 2019

Does that in itself not echo a past CEOs concerns regarding how things were represented to shareholders.



How many shareholders not named GSFC or Directors actually participated in the Rights Offering as the directors at the time all doubled their share count as a result of the Rights Offering and that number is not reported

[patospower]

The rights offering was straight robbery no doubt. Their excuse for it was BS - "well you just have to subscibe to the RO and buy the shares, and you won't be diluted!" but they knew full well that few shareholders would subscribe, for a multitude of reasons. It was a layup for them. In fact they made it pretty hard to subscribe, the process was relatively convoluted (as far as I

[Trade33right]

I have not found where the company has posted the recording of the meeting.  I am curious if any tough questions were asked and what the answers were. 

[patospower]

I am willing to bet they did not take any questions, would love to be proven wrong.

[mdjbrown]

patos, the more I look into the Rights Offering, the more concerning it appears from a shareholders point of view. To my understanding, any shareholder who exercised their initial options qualified to aquire additional options left over from those shareholders who did not participate in the Rights Offering. GSFC also signed a stand by agreement in the event those additional shareholder options