Here is what I got from Mr. Barry, which doesn't really address the issues I raised.
Hello *****
Please see my answers below
“We spent a bunch of money on an asset in Kazakhstan. Now we are distributing much of that value to shareholders in a form that makes what shareholders get worthless.”
– worthless?? The news release outlines the company’s intentions that if you own Silver Bull shares at a yet to be set “Day of Record” you will receive the same number of shares in our new subsidiary Arras Minerals. Therefore, if you have for example, 100 shares in Silver Bull on the day of record, you will receive 100 shares in Arras Minerals - this is called getting two for the price of one. Our disclosure is worded as such, because it needs to conform to SEC requirements on the possible next steps for Arras.
“We do not plan to do anything which will make what we have given you worth anything, especially if you are Canadian.”
?? Strange comment. We just did a financing in Arras and have a lot of work planned for the Kazakhstan project.
Best
Tim
And here is the response I am sending.
Mr. Barry
Thanks for your response. However, Here is the issue, which was not really addressed by you. I fully understand that I will receive an equal number of shares of the new company. Over the years I have participated in many spin out transactions. However, if the resulting shares cannot be traded, they will have no value to me.
The way I and many others on the bulletin boards interpreted the wording in the PR is that you stated that you will not be making any efforts to get Arras listed on any exchange, meaning its shares have no value since we can't sell them, and that this is especially truly for Canadian shareholders.
That seems very clear from the way the PR is worded. What am I and the others missing? Are we supposed to somehow intuit that someday you will try to get the shares listed even though you are saying the opposite?
I can't see how answering these questions will cause any problems with disclosure,. Each of those other spin outs I was involved in included a statement about seeking a listing even if the spun out entity was not immediately listed. It is 'standard procedure', because it shows the shares will have actual value. |
