GreenStar Agricultural Corporation V.GRE

Siskinds Class Action update

[Bean_and_Dunn]

Settlement was reached with certain directors for a total of $500,000. This amount is before deduction of legal fees by Sisking and various accounting fees. The best estimate that I have in regards to share outstanding is given in the following press release.  

GreenStar Announces Conversion of Special Warrants Toronto, April 17, 2014 –GreenStar Agricultural Corporation (TSXV: GRE) (“GreenStar” or the “Company”), a processer of agricultural products such as canned fruits and vegetables for distribution to international and domestic markets, today announced that after public float requirements were met and receipt of TSX Venture Exchange approval, 13,069,892 of the previously issued special warrants of the Company have been converted, in accordance with their terms, into an aggregate of 13,069,892 common shares of the Company. The special warrants were issued by GreenStar on May 31, 2011 upon completion of the Company's qualifying transaction. Each special warrant is convertible into one common share of GreenStar for no additional consideration upon the Company satisfying the public float requirement of the TSX Venture Exchange. Following the issuance of the common shares, there is an aggregate of 30,406,616 common shares outstanding. 

This works out to 0.33 cents per share per each $100,000 net after deduction of legal and admin. fees. If legal and admin fees are $300,000 each share would be worth 0.66 cents. So 100,000 shares would be worth $6,666.

I guess we could call up Siskinds and get an approximation of their costs.

B&D

[Bean_and_Dunn]

https://www.sedi.ca/sedi/SVTIIBIviewResults?locale=en_CA Guan Lianyun held aprroximately 9.3 million shares other directors held about 1 million in total. So let us estimate that the division will be by 20 million in which case for each $100,000 of funds left over after expenses each share is worth $0.005 per share. 100,000 shares is worth $5,000. If legal and admin expenses are only $200,000

[OPFunds]

Legal fees should be around $200k according to this: At the time of the Approval Hearing, Class Counsel will request that the Court approve its claim for legal fees under the contingency fee agreement with the Plaintiff, to be paid out of the Settlement Amount and not to exceed 25% of the Settlement Amount, plus HST, and up to $55,000 in reimbursement for disbursements plus

[Bean_and_Dunn]

(So $125,000 + $55,000 or less) + GST. = a maximum of $203,400 $500,000 - $203,400 = $296,600 Divide $296,600 by 20,000,000 more or less and we are left with a payout ratio of  $0.01483 per share held. Shouldn't there be some jail time for the dishonesty involved?  What is wrong with our financial laws in this country? B&D