Post by
lonade on Jan 28, 2015 11:58pm
Objections against Merger / Lawsuit
We have been reading a lot of comments regarding objections against the merger.
I think it is an excellent way of combining two small companies into a major tungsten producer that has the potential to become a market driver in the near future. Having said that....
As I wrote yesterday, a lot of things have happened in the background and we will probably never be informed about everything. Does Dundee have problems, I dont really care! Are Dundee involved on both sides, I dont care either! Thats business and normal practice...
I think it was Kilgor who wrote that the 0.08 cad came to be due to Almonty not losing the majority in the share distribution, which I fully understand and respect. No company will want to go into a merger and then loose the control of the company (if they have the choice). That was the reason for the 0.08cad! Thx for highlighting that on the board.
The point here is that the the WOF management has been voted by the shareholders to represent and lead the company in the interest of the shareholders. There are laws in place to ensure that is meet.
Mr. Gaucher is not above us, he is working for us! He has the legal obligation to represent the company to create value for the shareholders. Even the smallest shareholder and not only Dundee and the other major shareholders.
So even if Mr. Gaucher thinks that 0.08 CAD is what he would accept, this does not mean all the shareholders have the obligation to do so either.
He certainly does not have the right to sell the company for a price that is far below its proven value; which is evidently not in the interest of the shareholders.That is not why he was put there.
As also correctly stated by another user, I do not think the merger will/can be stopped and I honestly hope it does go through, but I do not agree with the conditions.
Another user stated that a lawsuit can only be started by the institutional shareholders and makes no real sense; that is simply not true. This user has evidently never particiapated in one or is clearly on the board to stop the shareholders from considering this option.
A lawsuit can be started by anyone and any shareholder can participate. The costs are then allocated based on the number of shares of each involved shareholder. So a shareholder with millions of shares will clearly pay a much larger portion of the fees than a minor shareholder with only a few thousand shares. But 100 small shareholders are just as effective as 1 major shareholder, please keep that in mind!
So to state it very clearly, I could be one of those shareholders who will possibly initiate a lawsuit (since I am one of those who has millions of shares....) and will of course inform all on this board. You will then be able to join me; if you also feel that you have been treated unfairly.
It is essential for those opposed to the merger at these conditions, to vote against it (Not voting is also to be avoided)! This is very important from a legal point of view.
There are so many ways the shareholders of WOF can be treated reasonably and fairly by being compensated for the real value of the company.
Let them keep the 0.08 cad in order to ensure that Almonty keep control of the company, but they could offer a cash payement of 0.03 - 0.06 cad per share (still far below the actual value, but reasonable)
In order not to impact their current cashflow the payment could be delayed to payment upon commenecment of mining activites at Sangdong, but no later than 2 years from merger regardless of Sangdong commencing the mining. This would not impact the startup Sangdong and their other mines. This would still be one of the greatest deals for Almonty.
This is just one example, of how it could be done and has been done before.
To Summarize:
I think WOF and Almonty could have an bright future ahead of them and I would be glad to be a shareholder of the future company, but am not willing to accept only the 0.08 cad for each my shares.
Comment by
kilgor on Jan 29, 2015 3:32pm
When it comes to money and power, there is no such thing as: let us all get along, group hugs, play nice, do for the good of all. There are no queensberry rules......its raw carnage, no-holds-barred, dog-eat-dog! If you think about our mine, it is a lot of potential money, hence what rules do you think major investors play by? Again, they didn't get big by playing nice.....
Comment by
kilgor on Jan 29, 2015 4:32pm
Oh yeah..... I have changed my mind........ there is No Way I would want Almonty mgmt of our company!