GEOMAQUE Message Board - Msg: 16317627

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Gold/Mining/Energy : GEOMAQUE

GEO 14.84

-0.9%

Nov 11 4:00 PM EST

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To: russwinter who wrote (238)	9/7/2001 9:28:41 PM
From: s.jennings	of 260

Russ, this situation reminds me of Casmyn Resources a few years back. Not suggesting that the same thing will play out here but just an idea of what can happen. Too complicated and ugly to go into details but the long and the short of it is this: a couple million dollars worth of convertibles tied to the market price (stock went from $8 to $0.01 in a matter of weeks) increased the number of shares outstanding from 20 million to 270 million. The convertible holders, now majority shareholders, enacted a 1 for 500 reverse split. To clean up the mess minority shareholders who owned a round lot (100 shares post split- 50,000 share pre-split) were offered a buyout at $6/ post split share. Minority shareholders who owned less than 100 post split shares weren't entitled to anything. The company was then split into 2 holding companies, 1 holding the debt, the other holding the assets. The one holding the debt filed bankruptcy which was eventually discharged by the bankruptcy courts and the one holding the assets is still owned by the convertible holders. Truth is sometimes stranger than fiction. As far as I know the SEC filings are still available either under Casmyn or Aries Ventures.

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