droopyeyes, GNCP Justification for AS Increase…
Make no mistake about it, normally when a stock increases their Authorized Shares (AS)
from 2 Billion to 10 Billion
, it is usually a sign to simply sell and move on as dilution is usually the norm, but here with GNCP
, you are probably wondering why the price has gone up since that increase from .0003 to .0014 per share with much existing strength looking like it should carry on into the pennies.
I am going to explain the answer to your original question within this post, but I will do one step further in this upcoming post that I am working now to release later today or early tomorrow that will show why we have a bottom here for GNCP
in the pennies. This means that until we reach such, we are significantly undervalued. This is one of a few reasons why the price has gone up because I believe that investors are learning of this and are starting to understand the management’s strategy and intent to mature GNCP
. This is important because it ties into your answer and with everything else that’s going on here with GNCP. IMPORTANT TO NOTE: You see, you can have the best kept secret in the world as a company, but if you as a company don’t properly communicate with the public/shareholders, then that’s just what you will have… the world’s best kept secret. Then too, that’s just how your stock will react by remaining the best kept secret in the world and the price would either remain stagnant or go down.
This is what GNCP
realized when they released their last PR a few days back. I haven’t forgotten about answering your question, but I think it is important to understand the key points within this PR because it does all tie together. See below the PR and the Key Points from their last PR:
** Regular updates from PRs to shareholders.
** Retained a design firm to immediately update and improve its corporate web site.
** No Reverse Split of the Common Stock is under consideration.
** Nor would a Reverse Split be considered to be in the interests of our stockholders.
** Any rumors of a Reverse Split are false and misleading.
** Updates are coming on the “White Hills” Gold Exploration Property in Arizona.
** Further updates on the additional Exploration Properties in the Company’s Portfolio.
** Strategy remains to generate revenue streams from the Joint Venture Agreements.
** Proceeds to be deployed to accelerate exploration of other Gold Properties in its portfolio.
** Revenues will lead to further Joint Venture Agreements, and cash flow.
** Funds used to sale of other advanced stage exploration properties.
** No requirement of additional funding is needed; $10 million previously secured.
** Management will monetize its existing assets.
** Management still seek to acquire additional assets if it’s a strategic and economic fit.
This is a very serious PR because it leads more towards confirming much of what some of us have been speculating all along to be fact for justification of the AS increase. Now it’s important to understand that before moving forward, it was important for the management of GNCP
to wipe away all debt to position the company for maximized growth. This is why they had to eliminate the $4 Million worth of Debt
had explained in the PR below as the ”sole”
reason why the increase of their AS to 10B:
The sole basis for the amendments to the Company’s Share Capital was to authorize shares of Preferred Stock of which a new class was designated as “Series A Convertible Preferred Stock”. The Company issued an amount of 4,118,361 shares of Series A Convertible Preferred Stock at a price of $1.00 (One dollar) each; on November 1, 2013. This was in settlement of outstanding Payment In Kind Notes issued by the Company on June 17, 2013 upon the acquisition of the “White Hills Gold Properties”. This was in respect of the Capital Amount of $4,000,000 (Four million dollars) plus accrued interest.
Now important to note is what is stated within the filing of that debt payment under section B. Optional Redemption:
The Company may at its option, redeem the Notes in whole or in part at any time or in part from time to time, in cash. …
This clears the way for…
COMPANY RATIONALE FOR THIS ISSUANCE:
The issuance of these Convertible Loan Notes to these stockholders enabled to save the Company in making a cash payment of $206,400 from its available loan facilities totaling $1,500,000*. The Company’s Management prefers to expend its cash resources on exploration of its Mining Exploration Properties.
*An amount of $1,000,000 was provided for development of existing Company Mining Exploration Properties. The additional $500,000 was exclusively provided for development of the Company’s “White Hills” Gold Exploration Properties. …
Now read in greater detail what was released within the PR above concerning the increase of their AS which ties into the last PR released by GNCP:
As a part of this transaction, the Company was contractually obligated to increase the number of Authorized shares of its Common Stock; as set out in the terms and conditions of the designation of the shares of Series A Convertible Preferred Stock.
The Company has not increased the amount of its outstanding shares of Common Stock; nor has it issued any additional shares of its Common Stock whatsoever.
The Company has now eliminated in excess of $4,000,000 (Four million dollars) in its long term debt and created additional Stockholders’ Equity through the issuance of these shares of Series A Convertible Preferred Stock.
The shares of Series A Convertible Preferred Stock issued by the Company are not convertible for a period of less than 1 (One) year from their date of issuance, have no voting rights and not tradable.
In the interests of transparency, the Company today filed full details of all of the Statutory Filings pertaining to these Capital Amendments, to the Issuances of the shares of the Series A Convertible Preferred Stock and disclosed the stockholder details of each and every recipient of the shares of the Series A Convertible Preferred Stock.
The Company has requested that the OTC Markets update its Information Page to reflect the Issued Shares of Series A Convertible Preferred Stock, the increased number of Authorized Shares of Common Stock and the Authorization and the Designation of the shares of Preferred Stock and the shares of Series A Convertible Preferred Stock. These updates will reflect exactly what was filed with the OTC Markets today and as set out in this Press Release. …