Saturday, September 29, 2012 4:48:12 PM
Imagine, an IPO for Global Gold Consolidated Resources.
Imagine an evaluation of $100,000,000 pre IPO
For arguments sake lets say it is a $1 per share on the initial holding
- GBGD owns 51% or 51,000,000 shares
- and CRA own 49% or 49,000,000 shares
Now imagine a valuation of $140,000,000 of the IPO.
Imagine investors make an investment of $40,000,000 in the IPO at $1.00
The investor come in and get 40,000,000 shares new float is 140,000,000 shares.
GBGD is guaranteed a $40 Million valuation of their shares or 51% interest, which ever is higher.
Now GBGD has 51,000,000 shares out of 140,000,000 its share is 36% and value of $50MM, but it has to be the higher of either 51% or $40MM, so now GBGD's has to receive more shares to go to 51% . GBGD gets an additional 42 million shares to keep its 51% interest (no dilution to GBGD, what a joke)
Who in the hell in their right mind would put money in this investment where the moment you put money in the IPO you get diluted 23%. YOU GOT TO BE CRAZY.
I predict this financing will never take place. No sophisticated investor will put money in this project so he can be diluted immediately by Van Krikorian and Global Gold!
Anyway, this all hypothetical, considering that the Toukhmanuk License is:
- In default because GBGD has failed to mine 80,000 tones of ore per year
- In default because it has failed to invest $1.25MM per year
- Has not applied or received the new mining permit under the New Mining Code in Armenia
- IS under investigation for tax fraud by the Armenian State Revenue Agency
- New drilling on the project found absolutely no gold (withheld by GBGD)
- Review of the Core showed no presence of Gold (witheld by GBGD)
- Former employees have provided information to me that the reserves at Toukmanuk are manipulated
- Appears that the Director of GGCR, Mr. CARALAPATI PREMRAJ was not authorized to sign the agreement
- Etc…..
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