a plague o both your houses

Abitibi Royalites (RZZ.v): Glenn Mullan loses his cash cow…or not

Back in June 2015 IKN did its part in shining the light on yet another smallprint scam in the Canadian capital markets with this post on Abitibi Royalties (RZZ.v) (which by the way Mister Ball, has had a whole bucketload of hits in the months since then) that pointed to the “Management Success Fee” clause held over the company by Glenn J. Mullan which was a total rip-off scam (quel surprise).
Today we get this from RZZ.v:

VAL-D’OR, QUÉBEC–(Marketwired – March 15, 2016) – Abitibi Royalties Inc.
(TSX VENTURE:RZZ) “Abitibi Royalties” or the “Company”) announces that
the Board of Directors, after continued consultations with various
stakeholder groups, has terminated the Management Success Fee Agreement
as described in the Company’s Management Information Circular dated May
15, 2015, prepared in connection with the Company’s annual general and
special meeting of shareholders held on June 25, 2015. Approximately
$132,000 had been paid under the Management Success Fee Agreement, with
no further amounts payable.

The Company, through its Board of Directors on
recommendations from the Compensation and Corporate Governance
Committee, intends to compensate its officers, directors, employees and
consultants through conventional means including salaries or management
or consulting services fees, bonuses, as well as awards under the
Company’s Restricted Share Unit Plan as previously approved by
shareholders and the TSX-Venture Exchange. The Company has 824,269
Restricted Share Units available for issuance.

So that first paragraph sounds pretty shareholder friendly, the Mullan cash cow goes away, right? But then the second paragraph comes along and the fudge begins. You’ll note that the bold and direct statements of para 1 are eschewed, in their place hints and suggestions and potentials that allude to something else.
In other words, betcha Mullan has still got a sweet deal. And Ian Ball just wants this whole thing to go away. And it won’t.

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