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Bullboard - Stock Discussion Forum Nickel 28 Capital Corp V.NKL

Alternate Symbol(s):  CONXF

Nickel 28 Capital Corp. is a Canada-based nickel-cobalt producer through its 8.56% joint-venture interest in the Ramu Nickel-Cobalt Operation located in Papua New Guinea. In addition, the Company manages a portfolio of nickel and cobalt royalties on projects in Canada, Australia and Papua New Guinea, including a 1.75% net smelter return (NSR) royalty in the Dumont nickel project in Quebec and a... see more

TSXV:NKL - Post Discussion

Nickel 28 Capital Corp > Where is the negotiation?
View:
Post by ICNick on May 10, 2023 1:00pm

Where is the negotiation?

It would seem reasonable to me that if a party, in this case Pelham, brings forward a proposal, the other party (Nickel 28), should try to negotiate.
not only once, but twice did Pelham came with a proposal, and twice it was rejected by Nickel 28.

Management is at a turning point. Many shareholders (true, I do not know how many that is) are concerned about management diluting the cie for their benefit. Management in trying to change their compensation now because yes they feel the pressure. Directors did not stop the practice and are now concerned about their directorship with the company. Yet, and obviously, all of them voted against Pelham proposals without counter offering.

Pelham wishes to have 3 board members appointed from their roaster. Is this loading your hand before you start playing? That would mean the CEO or President, plus one of their current directors, against Ned C. and two of their nominees. Perhaps it should be 2 each side plus one more chosen by an independant group, if such a process is feasable.

That the A group renounces to all stock-based compensation received in 2022 is a lot. They should be entitled to some....and this needs to be negotiated.

That Nickel pays for Pelham expenses incured is ludicrous. 


In the end, we are in a scenario where tension is rising and management should open the door to negotiations. If nothing satisfying turns out from those negotiations, management can still reject I am afraid that if Nickel management does not open the door for negotiations it will become nasty! I sincerely hope and look forward for a positive resolution between now and the agm.

Comment by Talchior on May 10, 2023 2:44pm
Indeed, where is the negotiation. The previous options where agreed via a vote. At this time, there was no guarantee how the company will go as no cash.   Now, Pehlham buy at low cost stocks on the back of people and then considers that 1,7 is still a good price. With these stocks, they want impose their minds with less than 15%?   We can consider that the options were an abuse ...more  
Comment by microcaptt on May 10, 2023 3:49pm
Management is good?  Good at what?  For starters the assets that NKL owns were bought by this management team for 2.10 CAD when spot Ni was trading at 12k a tonne.  And today the stock is1.50 CAD and Ni is nearly double at 24k.  Don't tell me these guys are good allocators of capital or "deal guys".  Also these are 100% passive assets - there is nothing for ...more  
Comment by Talchior on May 10, 2023 4:01pm
Yes, we have a passive asset which will shortly be paid and then dividend will be paid. Also, there are 3 projects in good direction. Are you ready to sell your share for a low price or are you waiting the dividend and futur cash flow? 
Comment by microcaptt on May 10, 2023 4:46pm
To be clear I have no issues owning passive assets.  I have a problem paying a management team too much money to manage them (collect a few checks and make a few reglatory filings).  With that said what has happend in the past is in the past now.  What I care about now is how value is going to get created moving forward.  I think it starts with "fair compensation" ...more  
Comment by Talchior on May 11, 2023 12:23am
About the buy back, I asked the question.  "could you explain what's the rational behind the selection of buyback in place of payment of the debt? There is so many attempt on the payment from the shareholders" Anthony answer:"it creates the "option" and not an "obligation".
Comment by microcaptt on May 11, 2023 10:20am
Thanks for sharing.  I think based on their press release (clip below) we can agree that their messaging was highly misleading.  It was clear to me that they were going in a different direction (flip/flop) as it relates to the use of excess cash (debt paydown vs buybacks).  All of these types of decisions are "options" not "obligations" so that answer is BS.  ...more  
Comment by Talchior on May 11, 2023 11:04am
It could be a translation issue. When I read it, I directly considering at an option. Other people didn't agree with me.  The fact that is an obligation is not clear for a not native like me. Perhaps similar issue?
Comment by microcaptt on May 11, 2023 11:30am
At a minimum the timing is questionable wiht respect to the buyback announcement.  With that said I am more curious what the plan is moving forward.  It would be good to hear what managements thoughts are now.  It would also be interesting to hear Pelham ideas/strategy around the debt and excess liquidity as a larger holder.  Increasing liquidity on the balance sheet does not ...more  
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