On December 31, 2013 the Company received a proposal from these noteholders and Sandstorm Gold Limited (“Sandstorm”) which, if implemented would offer the Company the ability to carry on business activities past December 31, 2013 with a view to its potential sale or future recapitalization. However, existing holders of common shares would experience massive dilution to the point where they would, in aggregate, hold approximately 1.7% of the outstanding common shares after giving effect to the terms of the proposal.
“…to effect a recapitalization and financing transaction (the “Recapitalization”). The Company expects further support of the Recapitalization from additional holders of Convertible Notes.Jaguar’s Board of Directors has determined that the Recapitalization offers substantial benefits to the Company and is in the best interests of the Company and its stakeholders. Among other things, the Recapitalization results in a significant reduction of the Company’s debt, increased liquidity for Jaguar’s operations and allows the Company to make certain necessary capital investments and accelerate operational improvements.
An extensive review process has shown that the Recapitalization is the best available alternative for the Company.“
- Both in Brazil
- Both gold mining companies
- Both FUBAR
- Both wildly underestimated costs
- Both with wildly overestimated management teams that eventually showed true colours
- Both in the process of anally violating anyone stupid enough to be still in possession of its equity.
PS: And yes you’re right, the IKN post from Tuesday December 31st on CSI.to is looking pretty smart now. Thanks for mentioning it.