Great questions. This is the third company that John Clarke has ruined. He tanked Ashanti Gold. I was told by a respected gold mining executive that John Clarke lied through his teeth about the Ashanti hedge book. He also tanked Nevsun. Friends tell me he did not run it well. I have met him multiple times. He is evasive. I should have sold. My bad.
I believe that Gramercy and Baiyin have had a clear plan to take this over since the beginning of their involvement. They are a "vulture lender" and they use what is called in the business "loan to own" tactics. Basically, they want the Company to be cash tight so they can make sweet deals and strangle the cash flow. Eventually they end up with 100% of the equity. Bottom line: Banro is actually a very valuable Company. 12 mm oz. in all categories is worth between $1.2 and $2.4 billion. PPE of $682 is real and valuable. Cash flow when the mines are operating is over $100 Million.
By my estimate the Lenders (Gramercy and Baiyin) have $200 million invested.
It is a fact that the Common Shareholders contributed $582 million over 10+ years.
The outcome: Lenders get $2 billion Company. Common gets zero.
So if Gramercy and Baiyin can pull this off they are going to make billions
The Management, Board and Lenders had a fiduciary duty to protect the Common. They did not exercise that duty. I think that is highly provable.
This is the basis of the Class Action Suit I am working on.
The Toronto Globe and Mail is doing a story with the angle of how a sharpie hedge fund stole this Company from its small common shareholders.
The Business Editor there is Derek DeCloet. He wants to hear from damaged Banro shareholders, tell your story, explain how the Company misled them, etc. He has asked me to post this. Send him an email with Banro Shareholder in the title. DDeCloet@globeandmail.com
If you want to see the guys who took this Company from us feel some of the pain we are feeling please take the time to send him a thoughtful email.
In a Class Action suit awards can be substantial. Gramercy is a $ 6 billion hedge fund. They have some deep pockets. If we can prove they stole this company the damages could be very large.
