Agreed Netman, and a couple more points.
Regarding this $4.00 price, I'm not sure what that's about, unless it's about the price at which TAC has agreed to buy 6 million shares when Richmond Downs gets approved. That price is also one of the conditions for listing on the National Small Cap market.
Even with the lease signed for Richmond Downs, we will still be several regulatory steps from final approval, so TAC's money (which together with a $4 share price would virtually assure a NASD small-cap listing) won't really be necessary - at least not for that reason - until approval is obtained.
The whole matter of the targeted minimum of a $4 share price raises a number of interesting issues, some of which have been discussed before, and one which I haven't seen discussed.
Firstly, when the Interport lease is signed, the agreement will be with the Canadian Federal Gov't., or their representatives. The significance of that should not, in my opinion, be underestimated. Do you remember the child's game of rock, scissors, paper? Well, the feds are the rock. They trump everything. Technically, once the feds sign, no further approvals are necessary. Again, IMO, the Interport group will not sign until they are assured that this project will happen. Richmond Downs will be their marquis, and first, signed lessor. In other words, when the agreement for the lease is signed, the Richmond Downs project will have the full weight behind it of the fed's. and Interport, with all the other hugely important deals (ie., tax dollars) that Interport has yet to sign. I know I will repeat myself when I say this, but IMO, the Interport agreement is the critical turning point, and everyone that counts knows it. After that it will be a matter of going through the hoops, and I wouldn't be surprised to see a fast track, especially since many of the planning and development questions will have been resolved by the time Interport/Fraserport/Feds sign.
This brings me to the point that I haven't seen discussed here. It's related to the conversation we've had about Stronach, Churchill Downs, and the potential for Sungold to be in play. When the Interport consortium signs, TAC immediately comes to front and center, because it will then be virtually inevitable that TAC will soon be buying 6 million shares at $4 US.
TAC Investments, as we know, is one of the companies controlled by Don Harris. This is where it gets interesting for me. I forget exactly how many shares and options in Sungold that Don Harris controls, but I believe it's about 2 - 3 million. I believe that he effectively has control of more shares held by close acquaintances. If we add those to the shares he will purchase when RD is approved, we can see that he will move into a dominant, and probably a control position within the company.
In short, what I am suggesting, and it's just in my opinion, is that while we have been talking about the Stronachs and Churchill Downs, (and I'm not discounting the significance of their potential involvement), we may well be overlooking a quiet take-over from inside that is already in motion. This leads me to want much more information about Don Harris. The last I heard, his real estate and development empire were worth over $100 million US. I don't know where it stands now. He is a very successful man, and clearly has the financial clout to develop Richmond Downs.
What that means, if anything, in the current context, is not something I will openly speculate on just now. I will say that it raises a number of tantalizing questions about why TAC/Harris would seek control, what the impact will be, and what they will do with it. Keep in mind that all this information is based on public records, and that Sungold management fully supports all events that have occurred to date. |
