From the latest issue of northern miner. It's a long read but here's the teaser. Management must have a good law firm. Dewey, Steele, and Howe. Must be time for a rollup soon. Or maybe one more "private" placement?
A minority group of shareholders in Blue Moon Metals (TSXV: MOON; US-OTC: BMOOF), which holds a first-resource-stage zinc-silver project in California, says its CEO issued defensive stock offerings that destroyed an estimated $8 million in stock value.
The lack of transparency and lost capital are a lesson for junior mining investors, mining engineer Michael McClintock, founder of the McClintock Group of stockholders, said in an interview with The Northern Miner. The group once held about 15% but it’s been diluted to around 3.5%, he said.
Part of McClintock’s argument is that the TSXV and Canadian securities regulators should have probed defensive capital raisings at below-market prices last year because they benefited CEO Patrick McGrath and board members at the expense of other shareholders. Share offerings at 1¢ when the stock was 2¢, and twice at 6.5¢ apiece when the stock was around 9.5¢ and 8¢, followed a 10-to-one rollback, documents show.