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Non-Tech : Sungold Gaming International (SGGNF) -- Ignore unavailable to you. Want to Upgrade?

To: Cheeky Kid who wrote (1343)	12/11/1997 2:03:00 PM
From: John Lawrence	Read Replies (1) \| Respond to of 5164

Here's the FP Dec. 11 article - wildly inaccurate. (Cheeky - you are so right about the press.) Sungold plans racetrack in Richmond VANCOUVER - Sungold Gaming International Ltd. says it has signed a US$24 -million deal to finance a proposed racetrack project in Richmond, B.C. Under a letter of intent, Sungold will issue privately owned TAC International Investments LLC of Minnesota four million shares at US$6 a share. The agreement is pending approval of the project and the support of shareholders. The company plans to present a detailed overview of the proposal to the Richmond city council in January. The company's two multimillion-dollar casino projects in South Korea were the buzz of Howe Street last winter. Speculation boosted Sungold's shareprice from about $5 in November 1996 to a record high of $19.50 in January. According to the Vancouver Stock Exchange, Sungold failed to file change of business documents or secure a sponsor brokerage. Following a three-for-one stock split in February, the VSE halted trading in the shares at $5.83. In August, securities officials said trading would remain frozen due to the management's lack of a business plan. Sungold has since delisted from the VSE and hopes to begin trading on Nasdaq's over the counter market in the next few weeks. [Keith Damsell FP] I can't believe the FP would print information that is so poorly researched and is just plain wrong. Sungold of course did file a COB and obtained a sponsor brokerage. The first sponsor reneged at the last minute, so Sungold got a second sponsor which did file. Sungold did submit a detailed business plan, but the VSE chose to find fault with it. All of the criticisms that the VSE had have since been proven invalid. Sungold has demonstrated their ability to form joint ventures with experienced gaming management, and with deep pocketed financial backers, as recent press releases have shown. The FP article suggests that trading was halted after the share split. Wrong. The halt was done pre-split at the end of February when the shares were at about $17.50. The FP article suggests that the VSE maintained the halt due to the company's lack of a business plan. Wrong. The VSE maintained the halt because they wanted to. Sungold has a strong business plan. The VSE applied their rules with prejudice against Sungold, and in favour of the member firms whose clients had, and still have, significant short positions. If the VSE applied the rules equally to all the companies on the VSE, many would now be halted, at least. The errors which the VSE made with Sungold will return to haunt them. During the halt, Sungold's projects have moved ahead significantly on several fronts. When trading begins again, new investors, and those holding short positions, who have not been able to buy shares during the development period of the last few months, will have to pay for a higher valuation of the company's projects. Although it's nice that the FP is recognizing the size of the projects Sungold is involved in, I hope that as more announcements are made, that FP will research their articles properly and print facts instead of nonsense.