Any idea what is happening to CDCH? Down 37% today? I haven’t been following very closely but noticed the drop today. UGGH!!
The BID was $0.005 and the ASK was $0.0099 all day. One trade of 30K went thru at the BID. The previous close was $0.008 so it was -37% on a $150 trade. In other words, meaningless. There is just no liquidity so we are up or down a big percentage assuming there are any trades at all. You can’t buy or sell in any volume at this point except once in a great while someone throws up a bigger block of shares.
I have tried repeatedly to both e-mail and call Patrick Day with no response of any kind.
So I can only assume he is in lockdown in response to the ongoing potential to be implicated in the MDMN share scandal. As such, although Cerro is not involved directly we are affected by the long shadow of events and will probably not see much progress until MDMN makes some legal progress. And of course we all need Auryn to continue to make progress.
Ditto here
Did people see this MDMN announcement today?
A rather detailed response covered much of the complexities on the CDCH thread by cornhusker. Here is the repost:
Wiz provided some new information yesterday. Apparently there is some type of “first right of refusal” held by Auryn over the 5% owned by Cerro in terms of any change of ownership transaction. This means Cerro can not sell or reassign the 5% just however they want. Auryn has to be given some type of opportunity to exercise their rights before such a transaction.
Also, the IRA / private company thing has apparently led to the advice that it would be better (and probably acceptable to Auryn) if the CDCH spinoff holding company (to hold the 5% AMC) would be a public company which would avoid some of the tax complexities. Building on this idea, Wiz / Kevin proposed that then there could be an effort to have a common BOD / executive team between the new CDCH2-AMC-HOLDING-CO and MDMN, one friendly and acceptable to Auryn, which would run the companies at the lowest expense level possible. The CDCH shell could go do whatever it wanted after that.
In addition Kevin / Wiz suggested it only makes sense that the CDCH2-AMC-HOLDING-CO and MDMN would be merged in the longer term (3 to 5 years) either directly, by being bought out or their AMC shares being bough, or other means like Masglas / AMC going public.
I think Patrick needs to be encouraged to engage these ideas and forge some type of relationship and plan with the new Medinah. This stone wall of silence between them is stupid.
BTW - Wiz did make the comment Patrick is being very cooperative on the MDMN share scam front in terms of providing information / documents etc. So perhaps they can build something from there, assuming the Days end up with clean hands and feet after all the MDMN investigation plays out.
I look at your post as a good idea and a trial balloon to gauge the interest, correct? If I understand you correctly it would be a public spin-off, freely trading, leaving CDCH an empty shell and moving the 5% into the spin-off. As CHG alluded to, it could be a rights offering to CDCH shareholders allowing it to be non-dilutive at the start. It would be preferable to a dilutive rights offering and could be headed by a common BOD / executive team already familiar with the AURYN project as reported by CHG. Cornhusker’s earlier post clarifies your “hypothetical” proposal. Perhaps any shareholders interest could be directly communicated to CDCH’s attorney instead of in a PM.
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CDCH is a public entity that ( will ) afford us liquidity and is basically a pure play on AMC. Granted, CDCH is a bit soiled but once Auryn gets things rolling that should clean up. If Patrick has plans other than a pure play on AMC then he should form his own entity to do his own thing. Let those who want to tag along with him do so at their expense. There is no reason why we existing shareholders should have to front money or get diluted ( those not contributing the $5K ) so that Patrick can retain our public vehicle.
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Theoretically true.
But the idea behind such a move would be to get away from the MDMN, JJ, Les past, new company, new management, new transfer agent, new accountant, and so on. And the benefits of the clean slate would hopefully be liquidity (ability to buy and sell which you do not have right now) and maximum and earliest possible benefit to Auryn’s progress.
Will those benefits turn out to be material compared to where we are at now? That’s the question that potential investors and current shareholders would have to answer for themselves.
CHG
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All the issues that are currently plaguing CDCH will rapidly disappear when we start recieving our share of cash flow. Yes, forming a new company would help ease the anxiety but I don’t feel it would move the stock price much. Only money in the bank that is earmarked for distribution to shareholders is going to get serious money to buy in. We can get a new transfer agent, accountant, attorney without having to form another company.
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It is clear that it takes $$$ to keep us current with reporting requirements which the company simply does not have and cannot afford. Voluntary delisting would be another alternative to the one Baldy is suggesting. It would essentially “put the company to sleep” for the 2-3 years before dividends are ready to roll in, at which point it could be relisted. A first step would be putting in place a trusted BOD and then Issue a press release filing a Form 8-K announcing the intention to delist from exchange and go dark.
Going Dark officially would require filing a Form 25 with the SEC under Section 15(d), or possibly 12(g), and relisting after several years when dividends from AURYN actually begin distribution. This may actually be a better option as it is a simplier solution with many advantages, as well as some risks. This would still take a few bucks to stay current until the deregistration could be accomplished. Many would not like it, but it would be the least expensive way out, IMO.
Either Baldy’s spin-out as suggested, or Going Dark, would likely require issuing preferred shares funding just to put things in place. Both alternatives, Going Dark or a free trading spinout, would entail limited dilution in future years when restrictions are lifted and preferred shares are converted. Baldy’s spinout suggestion would allow CDCH to carry on with a new project (currently in the planning?) and create the free trading spinout which solves the problem of those holding shares in an IRA.
The IRA problem was previously described in detail where those with shares in an IRA may not otherwise be eligible to receive dividends from future AURYN distributions. Under the spinout, current shareholders would hold both the newly created spinout as a pure AURYN play and stay with CDCH shares as was originally planned with the La Serena project that failed to fund. From what I understand, CDCH did not have an exclusive right to the La Serena project, which is the primary reason it did not fund. After a spinout, CDCH would carry on with another “La Serena-like “ project envisioned which is funded separately with preferred shares through CDCH after the spinout is completed. It is separate from the spinout.
Could someone please explain again the problem with receiving CDCH dividends held in an IRA?
@mdeman Someone else should explain it better, but it has something to do with IF we are changing it into a private company to limit the dividends to current shareholders to prevent dilution by the public company’s need to raise cash or make new investments. Somehow a private company is a problem within IRA rules.
Please, someone else, explain it better. I have I00,000 shares of CDCH in a ROTH IRA and 100,000 shares in a traditional IRA. What are my options? How will these various proposals affect me?
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How is it that we once again have to speculate on what ifs!!! As I recall Patrick has a super super majority control of the stock so nothing is going to take place without him buying in. So where is he and why are we having these types of discussions?
Do we not trust him?
Is Baldy floating this idea on Patricks behalf?
Is Patrick so preoccupied with the TA mess with MDMN that he has abandonded his responsibilities?
Once again everything is chaos with this company.
Maybe it is time for Patrick to excuse himself and place Kevin or someone else in charge.
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CHG GUESS: Maybe not “abandoned”. But probably under the cone of silence. So effectively, “ineffective”
Read this post again which is my report of a conversation Kevin had with a small group of people in front of the room after the info meeting had concluded in October (see my report post above in Oct):
In addition Kevin / Wiz suggested it only makes sense that the CDCH2-AMC-HOLDING-CO and MDMN would be merged in the longer term (3 to 5 years) either directly, by being bought out or their AMC shares being bough, or other means like Masglas / AMC going public.
Add those comments to the public comments of Patrick / CDCH earlier in 2016 that they were considering how to spin off the Auryn 5% and pursue other projects.
Put the two together: and it equals your “and place Kevin or someone else in charge” other than you are thinking of that in terms of CDCH itself. But Patrick apparently wants the shell and is in a position to retain it. So the spin off, suggested both by Patrick / CDCH and Kevin appears to be the proposed approach with the long term goal, according to Kevin’s idea, of merging MDMN and CDCH under one management team.
It’s a slow motion bouncing ball, but just keep following it, imo.
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I am not sure it is Patrick that wants to do something with the shell. It maybe the securities attorney that is driving this bus now.
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Received an email from Baldy advising me that a private or public spinoff of our 5% interest in Auryn is happening! He advised that we will be facing massive dilution because of the project that Patrick and George are anticipating if we don’t.
He also advised me that he has received enough PM’s regarding his proposed capital raising.
So apparently behind the scenes there are significant developments taking place with our company that only a few privlidged individuals are worthy of knowing about.
We lowly shareholders are just supposed to sit back and mind our own business while the relevant few take things into their own hands.
You didn’t receive an email or anything else from me. I attempted to test the waters (from an interest standpoint) on what is likely our path forward and received comments that highlighted how out of touch most shareholders are to this investment. I subsequently asked for my posts to be removed. I’ve lost any patience in handholding. This investment is frustrating enough as is. If you don’t understand what you own you shouldn’t own it.
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You are correct it was not an email, it was your response to me on this board which you almost immediately had removed. I can have Admin put it back if you need clarification on what you said. Your post to me left no uncertainty as to what is planned and what is going to happen.
Yes, out of touch because management of this company refuses to keep us informed of their plans. You obviously know a lot more than the rest of us because you have a line of communication to Patrick.
Please stop flattering yourself by saying you are handholding us shareholders who don’t have the inside track to management. Get Patrick to communicate with us and we won’t need your input.
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The company already made an announcement that it would be pursuing other projects and stacked the BOD with the people who were going to find them. Any new project will require financing and thus massive dilution to shareholders of CDCH. This is public knowledge. To avoid our current holding in 5% of AMC from being diluted a spinoff is required. Either private or public. None of this is new information yet you defer to “let’s do nothing and the dividends will take care of themselves.” This is not a viable option going forward so some folks, who are a bit more “proactive” are exploring the best foot forward.
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Last public communication was that the original project was scrapped. If there is another project under consideration it has not been officially announced.
Why is a spinoff required? Has it been suggested to Patrick that he form another private or public entitiy for these ventures? Why must the burden be on us already beaten to death shareholders to keep ourselves from being massively diluted. Why can’t management just once do right by the shareholders!!!
Sounds like more self serving self interest by management. So what else is new!
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