To All:
So the date is set for the AGM for Friday March 27th. at 10am. PST
I too feel that reverse splits in general usually don't do much for shareholder value, in the short-term anyway. However, with MXR's situation at hand it really will be in the shareholder's best interest. For a number of reasons, the first being that .15 cents is the minimum allowable financing level for the VSE, so they can't even get a start at these levels. Secondly the shares will then be fairly tightly held, and for a spec stock, we all know what can happen once a little buying comes into play. Thirdly, they are in talks with a number of other companies and such, but to make any progress in these deals they have to first have the higher share price for financing these operations as well as a firmer stock price to enable negotiations, as they most certainly will use part or all of a stock purchase arrangement. This would be if they JV with another company on a project or operation or buy another company outright.
Keep in mind that their 80% option in California returned results of
7.26 oz per ton gold over a width of nearly four feet, and .065 oz per ton/au over a vertical depth of 110 feet. They are keen to get going on this property, as they see its great potential.
I believe you will all be pleasantly surprised once the companies upcoming developmental plans are released.
I am however against a 7:1 reverse split, and see a 3:1 or 4:1 making more sense. This would be enough for financings and could hold itself with the reduced number of shares outstanding at a minimum .15 cent factor, I believe. This way there would be plenty of upside (pending announcements etc) and minimal downside to the consolidation.
I may have more later today on the companies direct plans of increasing shareholder value.
Regards,
Ric Staya |
