Hello Rick and To All;
This may be interesting reading for some;
Market Summary MARKET
Shares issued
Mon 24 Nov 97 Daily Market Report
The big trader on the VSE today, accounting for almost 10 per-cent of the
total volume, was the new PCS WIRELESS, up a nickel to $0.55 on 2,418,100
shares. The largest trade was just 40,000 shares, so it appears that the
institutions are not taking the lure of the cutting-edge digital radio
technologies, and new contracts, being lauded by Canaccord Capital.
Chairman Peter Brown's busy brokerage was by far the main participant, and
the leading net buyer, acquiring 1,162,500 shares and selling 1,098,500 at
an average price of $0.56 on both sides, thereby staying almost flat, and
safe. Merit Investment was the main net seller, buying none while selling
40,000 shares at $0.55. Unusually, there is nothing from or about the
promotionally minded company since we discussed it last Thursday.
The new TKO RESOURCES was next, down $0.03 to $0.11 on 598,100 shares. We
looked at TKO several times last May and June when, as the chart shows,
there was a flurry of activity and the price surged to $1.35, quickly
slumping to the $0.40 level. The chart does not show the equally abrupt
increase from that same level, starting late last April. Later, in
mid-July, the VSE halted trading, saying only that it was seeking
clarification of the company's affairs. At the same time the company
cryptically allowed that its late June report of completion of a private
placement of 1.5-million units at $0.84, was not true. It had "been advised
that funds in the amount of $706,272, representing the proceeds of 840,800
units, are not available to the company," and it was cancelling the
certificates for those shares and warrants. TKO did not say who had
notified it, why the money was not available, or who had defaulted. The
VSE, however, had earlier identified the purchaser of the entire placement
as Woodstock Products, owned by Leslie Rutledge. Unfortunately, this
default left the company US$400,000 short of what it needed, to complete
the acquisition and development of the Nebraska oil and gas interests that
it was obtaining from Wally Berukoff's American Eagle Resources, of Surrey,
BC. It was trying to renegotiate the terms of the deal.
A month later, in mid-August, the exchange said it would need another two
weeks to complete its review, and before it would reinstate trading the
company would have to come up with the money for the Nebraska project. TKO
was looking for a $900,000 private placement. The VSE has obviously either
changed its mind or forgotten about that requirement, as the company's new
directors are still looking for money. At the end of the month the VSE
lowered the boom, saying that trading would not resume until the company
had a new board of directors acceptable to the exchange, and until the
company had ended its management contract with Fleming Financial, and any
other service agreements with Donald Rutledge. It claimed to have
identified several breaches of the listing agreement, and violations of its
listing policies. These included issuing shares before receiving full
payment, making an apparently false certified private placement filing,
failing to disclose material information promptly and disseminating
misleading information relating to the private placement announced June 23,
1997. The exchange said that in doing so the company may have breached the
company act and the securities commissions' national policy 40 relating to
timely disclosure, and may have committed an offense under the securities
act. The exchange was referring those matters to the commission.
Our records show Donald Rutledge to be the owner of Fleming Financial, and
presumably there is some family relationship between Donald, Leslie, and
TKO director William Rutledge. Last week the company dropped Ian
Bartholomew, Jack MacDonald and Mr Rutledge from its board, and appointed
Robert Burton, Saverio Loria and Rashid Aziz in their stead. Messrs Burton
and Saverio are directors of CPT PEMBERTON TECHNOLOGIES, and Mr Aziz is or
has been a shareholder in, or a director or officer of, more than 20 listed
companies. Nicholas Temple of Calgary will become a director, and the
exchange has accepted a transfer within escrow of 2.25-million shares from
William Rutledge to the four new people, in equal shares.
The latest information about the company's properties is not encouraging.
Further work on the Ruby claims near Grand Forks, BC, will require raising
more money, and Uranerz USA has dropped its option on the gold property in
Nevada. Uranerz spent more than US$140,000, and identified six targets
worthy of more work. TKO's new management is studying that situation. The
company used the money it did receive from Woodstock to buy the entire
working interest (a 68 per-cent net revenue interest) in 20,000 gross acres
in Nebraska, but Woodstock's failure to put up the rest of the money caused
the company to default in its obligation to American Eagle to drill and
complete certain wells. Mr Bartholomew said that the new management will
make its best efforts to raise the money to do more work on the project.
Given today's market conditions, the eleven cent share price, and the
project's default status, the new directors have a Herculean task in
raising more money for this unfortunate company.
Third place went to David Rovig's GREYSTAR RESOURCES, up $0.08 to $0.80 on
578,100 shares. We last looked at the company in the market summary for
June 11, and since then the company has amalgamated with its partner, Paul
Conroy's CHURCHILL RESOURCES, and Mr Conroy has become a director of the
amalgamated company. Each Greystar holder kept the same number of shares in
the amalgamated company, while each Churchill holder received 1.3 shares of
the amalgamated company for each Churchill share. The shareholders of both
have fared equally badly since the amalgamation The amalgamation gave the
new company the entire interest in the Angostura gold project in
north-eastern Colombia, and cash of $18.5-million at the time of the
mid-August merger. The companies had then spent three years in drilling
more than 20,000 metres in 90 holes, and were at the 190-metre mark in
driving a tunnel for underground access. An independent estimated resource
projection by a Canadian consultant showed 1.8-million contained ounces of
gold from 34-million tonnes averaging 1.65 g/t at a cut-off grade of 0.5
g/t. This estimate covered only part of the property, and the consultant
thought it reasonable to expect significantly increased tonnage from
further drilling. Greystar has three drills now at work, with one of them
scheduled to drill from underground when the tunnel reaches the 230-metre
level.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
With regards,Frank |
