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Several people have reached out to John over the past years.. he never responds.. the company really ought to replace him
Video reminds me of this.
Whomever you guys feel is appropriate.
It's up to you guys discretion. I filed a complaint and it was similar to what was outlined in the Committee's notice to Muds.
These guys needsl to make a decision either honor the warrant agreement or face another long drawn out battle. Obviously there is value in our warrants or they wouldn't be risking going public with the this stain on the company. Then again they screwed so many people over what's another couple thousand.
They are trying to extinguish our warrants with this deal yes.
It is a flagrant breach of the warrant contract and that is why there is a class action already filed and a few more probably on the way once they go public.
Obviously there is real value in our warrants or they wouldn't be risking going public with this hanging over the companies head.
None of you can do math..
Or understand concepts like pro rata etc. Just because MUDS is ten dollars and our strike is 5 doesn't mean the equation is 10- 5.
It's all relative to the evaluation. FYI I have no intentions of trying to explain this my brain hurts enough as it is trying to detail something as simple as this.
Yeah Randy resigns with like 2 million in stock in the new company. Jones is only a couple hundred thousand behind him. There is also equity incentive payments of up to 8 million for senior level employees.
No...
Just sit this one out.
Terms are very clear Page 318 spells it out. Warrants remain with the seller and the seller is closing it's books and not exercising warrants unless they are exercised prior to dissolution which will occur immediately after they combine the business.
Not really strange. Almost 4% profit and free warrants
Interesting they had that many redemptions. I'm wondering if this deal even goes through/ regulators will approve it now.
Shareholders of muds took a look at hyct trading at .001 and took the 3% profit. Did it say if they got to keep the warrants? If so they essentially get a free roll.
Thats to extend the charter.
Whered you see this?
Thought they were voting to extend the deadline in their charter. They haven't even sent out proxy solicitation materials.
It was probably Louis..
Louis was that you?
Ok let us know what they say..
Contact Mudrick/Hycroft and ask them.
There contact information is in the 8k.
Except as provided for in this Agreement, as a result of the consummation of the Transactions, no shares of capital stock, warrants, options or other securities of the Seller or any Seller Subsidiary are issuable and no rights in connection with any shares, warrants, options or other securities of the Seller or any Seller Subsidiary accelerate or otherwise become triggered (whether as to vesting, exercisability, convertibility or otherwise). The Seller Warrants will remain outstanding obligations of the Seller after the Closing.
SEC Filing: https://sec.report/Document/0001104659-20-003641/
Probably the same person selling for .07
John Connor has been nonresponsive for years. The company knows this because investor relations has been advised as such.
We need to demand John Connor is replaced.
Sure Nick,
Everyone needs to 1) demand the seller "Hycroft" inform the parent "Muds" that Muds will be assuming the warrant obligations and demand hycroft get a written instrament from Muds detailing how they will assume the warrant obligation
2) Put the parent "Muds" on notice that the warranties Hycroft is making in the purchase agreement are inadequate since Hycroft cannot retain the warrant obligation unless they are the surviving entity and put Muds on notice they will assume the warrant obligation 3) cc the acquisition sub everything 4) Anything else you guys identify from a regulatory standpoint ie self dealing etc.
We are not trying to blow up the merger just enforce that which we are legally entitled to under the warrant agreement. Hopefully by now everyone understands we will fight for everything we are entitled to, and quite frankly, deserve.
Additionally, I am a shareholder of both hyct and Muds. There is some concern about this deal and the treatment of hyct minority shares and Muds (although I can always just ask for a redemption). While the treatment is concerning, from a regulatory standpoint, it is not my main focus because the parties to the merger need to be afforded the opportunity to make amends.
All notices, consents and other communications hereunder shall be in writing and shall be deemed given if delivered personally or by a nationally recognized courier service guaranteeing overnight delivery, or sent via email to the parties hereto at the following addresses:
(i)
if to Parent:
Mudrick Capital Acquisition Corporation
527 Madison Avenue, 6th Floor
New York, NY 10022
Attn: John O’Callaghan
Telephone: (646) 747-9500
Email: JOCallaghan@mudrickcapital.com
with a copy to:
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, NY 10153
Attention: Jaclyn L. Cohen
Telephone: (212) 310-8891
Email: jackie.cohen@weil.com
if to any Seller Stockholder, to the address for notice set forth on Schedule A hereto,
with a copy to:
Neal, Gerber & Eisenberg, LLP
2 N. LaSalle Street, Suite 1700
Chicago, IL 60602
Attention: David S. Stone
Telephone: 312-269-811
Email:dstone@nge.com
unless otherwise specified herein, such notices or other communications will be deemed given (a) on the date delivered, if delivered personally, (b) one (1) Business Day after being sent by a nationally recognized overnight courier guaranteeing overnight delivery, and (c) on the date delivered, if delivered by email. Each of the parties hereto will be entitled to specify a different address by delivering notice as aforesaid to each of the other parties hereto.
SEC Filing: https://sec.report/Document/0001104659-20-003641/
Pages 71-72 of the 8k have the email addresses of the interested parties. You can send notice via email.
You need to formally serve Jason and his CFO an inadequacy opinion based on the warrant agreement. The seller cannot retain the warrants liabilities unless muds delivers a contractual obligation stating they will assume the warrant agreemen since the seller isn't surviving the merger it doesn't have the legal funds to cover the warrants.
Why would you not want antidilution?
The company will be filing an S4 outlining the treatment of our warrants in the new company.
My understanding is this "merger" is not a qualifying liquidity event for multiple reasons outlined in the warrant agreement. The warrant agreement is pretty clear on this, the recent press release is not and is causing some confusion due to lack of details. More information will be disclosed in the forthcoming sec filings that should detail the exact treatment. Again, pursuant to the warrant agreement our warrant rights are not triggered due to the merger although they may be amended to give us additional listing rights. Whether the valuation is below the strike is irrelevant because the merger in not a qualified event.
Additionally it's uncertain this merger will survive sec scrutiny due to the treatment of minority shareholders. I own a few shares but this isn't my primary concern because I hold so many more warrants. Treatment of minority shareholders here is just a glaring conflict of interest then again so was hollowing out the company so the board could pay themselves back boatloads of interest and in kind. Really could get interesting from a regulatory standpoint Jones and Buffington probably have the paper shredders going 24/7 and obviously these guys want to rush this through.
The 20 million is muds warrants that were ussued with the 20 million shares at 10 dollars.
It's standard in these blank check companies to issue a shares at 10 dollars with a warrant.
Doesn't that pertain to muds.
The blank check shell Corp issued those shares warrants to their investors.
Yeah that's what struck me also.
Guess we wait to see the disclosures/"amended registration rights agreement". We all need to keep a close eye on this. The company is still contractually bound by the warrant agreement and I don't see any language suggesting this merger amends that contract.
The backstop is to allow holders of existing hyct to buy into muds they also get warrants in muds.
Alot of this seems like someone is cooking the books.
Those 20 million warrants are part of muds capitilization.
Hyct capitilization has warrants that are defined as restricted shares and look to have registration and carry over rights.
Wasn't one of the board members part of Dundee?
This class action suit only involves the brokers right?... Isn't hyctw in the clear due to the bankruptcy?
The ask is .12
Bid .07
conditioned upon agreement and completion of the full recapitalization plan.
So what's the FULL plan?
Why are they converting debt to equity when most the debt converts to equity anyways?
If a sale was the plan they wouldn't need to convert debt to equity would they? so it's either:
Going public
Merger/JV
Or a straight recapitilzation via what though? More debt or sale of equity?
I mean how much do they even have to raise to finish the build?
Think we will find out soon enough. The best thing for everyone is to go public and eventually raise money via etf placements.
Yeah what's this recapitilzation plan they speak of?
Going public? Merging?
"The Company is in discussions with respect to a financial recapitalization plan to better position the Company for the successful ramp-up of the Hycroft Mine and future growth."
The easiest calculation to value the warrants for me is...
For every 10 million over the adjusted equity value hyctw is worth approximately .137.
The strike price/float and factor can all change what doesn't change is we get 17.5%
of everything over the adjusted equity value.
The 5% discount rate is standard for mining projects.
What's the thirty year treasury 2.5%?
Mining NPV are hard to quantify and the NPV here assumes a gold price of 1300 in 2050. With inflation that's hard to imagine so that offsets any assumption of interest rate volitility.
The meat and potatoes is cap ex/op ex. Alot of leverage here im going to assume at 1500 gold that NPV damn near doubles.
Thing is im not buying they can pull this off by sprinkling baking soda on sulfide leach pads. On the other hand, as long as they sell the story that's all that matters right? and if gold or silver pop in the meantime the mine would be a cash gusher.
Wmucca what's your thoughts on the cap ex and leverage to margins here? This looks like a crazy leveraged play to me that still needs higher prices. Albeit if they go public and stick this in the GDX fundamentals matter much less.
Probably open up .0002 on 3 warrants.
Thanks...
Didn't see this..
There's a cashless exercise.
If the warrants are trading over strike you can convert the profits into shares. A rough example would be if they are worth double the strike price you could cashless exercise and get half your amount of warrants in shares.