This NR out a few minutes ago is a most wonderful warning on how bad this Palisades Goldcorp thing is going to be, management already feeding at the Heads I Win Tails You Lose trough of financial piggery. It starts like this:
Columbia, Jan. 16, 2020 (GLOBE NEWSWIRE) — Mexican Gold Corp. (the
“Company” or “Mexican Gold”) (TSXV: MEX) is pleased to announce that
Palisades Goldcorp Ltd., a private Vancouver Company, (“Palisades”) has
acquired, by way of private agreements, an aggregate of 18,278,488
common shares of the Company and warrants to purchase a further
11,875,000 shares in consideration of an aggregate of 4,916,600 common
shares of Palisades. The acquisition of shares results in Palisades
owning an aggregate of 37,821,388 common shares representing 36.6% of
the outstanding shares of the Company and 13,375,000 warrants.
So what’s strange about that, you ask? Just the main points, I think:
- The shares being bought by Palisades Goldcorp are coming from company insiders and pally pals, such as the 11.875m shares and warrants bought from Michael Kanevsky (of the Grosso Group, who coincidentally shares a board of directors with Collin Kettell).
- At no point in the NR is the amount paid for the shares and warrants disclosed (eg Michael Kanevsky paid 8c for his 11.875m units in 2019, each unit coming with a full warrant at 12c). All we have is a payment of 4,916,600 shares of a private company with no clue as to what it is truly worth.
As Palisades has already lost a crapload of money in MEX.v, they are now in the process of transferring the risk to the wider catchment of their new vehicle (that wants you to invest). Don’t be a fool and join them.