OK gang, here's the scoop from the horse's mouth.
I talked to Larry today. Official word is that the 14.4 NPEC originally "owned" in MDIN were in fact the proportion of Frontier's ownership of MDIN shares as represented by NPEC's 43% ownership of Frontier stock. Now the numbers don't work out quite right because this would mean FIRE owned about 33.5 million shares of MDIN. Maybe they owned some before the big transaction last year, I don't know. Maybe they've sold some since, I don't know. Didn't ask him.
Anyway, net result is that when the 25 million that FIRE owned got converted, NPEC then owns no common shares in MDIN. They do get the 3.2 something that is their 43% of FIRE's 7.465 (as was stated in both releases, FIRE is distributing those shares to it's stockholders).
In addition, NPEC got 1.5 million preferred in exchange for their residual 20% interests in the Chile properties.
So NPEC has no further interests in the properties (this does not include Brazil, Metroplus, or "patent pending"). They have no common shares of MDIN. They do have 4,707,950 preferred, eventually convertible at 4:1.
In addition, Larry confirms that MDIN does own part of FIRE and will therefore be getting a portion of the preferred back, and that portion will then be placed back in the treasury. He could not give me the exact number held. When I asked if MDIN held perhaps a similar position to NPEC's 43%, he said they did not.
DISCLAIMER: That's the gist of it. As I am having to recount this from memory slight details may be off a bit. I can not, of course, vouch for the complete honesty of what was said to me, though I have no reason to doubt it. Therefore, actual facts may differ somewhat from those reported here.
That settled? Hope now we can get on with our lives...
Geoff |
