Big changes at Gensource (
TSX:V.GSP,
Stock Forum) have succeeded in getting trading resumed, after a halt since Jun 20, 2013, but also seen a massive dumping of the stock.
Upon resumption of trading, sellers shaved $0.045 off the price of V.GSP stock, leaving it down 56.25% to $0.035.
Primary in the eyes of investors (or former investors) would likely have been the industry-wide stock value drop that occurred in July when Uralkali dropped out of the Belarus Potash Corporation cartel, a situation Gensource was insulated from due to their existing trade halt.
Not helping, however, would be the announcement two days ago that the company
has terminated the binding Term Sheet between the company and Canada Potash Corporation, which had set in place a reverse takeover and early stage distribution agreements with five Chinese parties.
Citing “technical challenges, difficult market conditions and a desire by Gensource to resume trading as soon as possible,” the two organizations broke the agreement but committed to continuing to build a China potash distribution network.
Along with the reversal with CPC, Gensource also saw some executive churn take place as roles were moved in-house, with a new President (CEO Mike Ferguson) and new CFO (Rob Theoret) announced.
Said Ferguson, “These changes reflect our commitment to our shareholders. We are configuring the Company to be ready to take on the exciting challenges we see ahead, while at the same time to be as efficient as possible to generate results for our Company and therefore, our shareholders.”
In late June, shortly before the poitash industry was hit by the Uralkali crisis, the company changed its name from Gensource Capital to Gensource Potash, "reflecting the Company's focus on potash development."