The preferred shares that were allowed to convert were the last of the preferred. According to the records, JJ obtained those shares recently by returning 20,000,000 common shares to the company in exchange for the preferred shares.
In order for the company to have denied the conversion, we would have had to have a court order. Getting one was cost prohibitive, and not guaranteed. Given that these were the last of the preferred shares on the books, we converted them and wrapped up the preferred issue.
20,000,000 over 3,000,000,000 was less than 2/3 of 1%. This amounted to less than $0.0000195 per share for each shareholder. I figured that was worth it to be done with the issue and not risk any possible legal shenanigans that JJ would try to pull on us in Chile because of the conversion denial.
PS @Baldy - I don’t think JJ is selling those shares into the market. He doesn’t have a lot of market savvy and will have trouble finding a broker in Chile who would take shares from him. jmo
I recall numerous conversations about how a 1-2% NSR was the norm for Juniors when partnering. Even if we give up 3/4 to a major it seems that 6.25% ( MDMN ) and 1.25% ( CDCH ) equity positions is still favorable.
I think you summed it up. I believe HR posted something some time ago as well. I’m not involved so I don’t know exactly how it plays out.
At the end of the day though, I see CDCH being renamed, consolidated, and MDMN going bye-bye after it receives and distributes its shares in CDCH (or newly named company) prorata to the MDMN shareholders.
I don’t know how this will be done, i.e. special dividend, exchange, or some other mechanism. That will be up to management with input from the securities lawyers. I do know that it’s not easy to get anything like this passed FINRA these days.
Karl, fair or unfair, it really isn’t that difficult to understand. Shareholders in CDCH and MDMN had been cheated for years before AURYN entered the picture. Unfortunately, your bookkeeping example does not represent the reality of the situation.
Old management misrepresented things not only to shareholders, but also to AURYN. While AURYN may not be the white knight that many originally thought of it as. The fact of the matter is that in AUG 2016, both CDCH and MDMN were essentially completely broke, could not pay the taxes for claims they still had on record, and would have been a 100% loss to all shareholders had AURYN allowed both to fold. AURYN instead hosted an informational meeting and management in CDCH and MDMN was reorganized to salvage what it could during the past 2 years.
$21 cash and $1210 liabilities on the balance sheet speaks loudly. What is hidden is guidance from AURYN on the next phase of this investment. Unless things change, even though CDCH and MDMN are publicly traded companies, both will likely only report minimally required information. My expectation is that shareholders will have to wait until all CDCH shares become unrestricted to see what AURYN has planned to monetize and exploit the Caren and remaining claim areas. At least I don’t expect we’ll see a reverse split of 1000 to 1! A more realistic ratio might look more like a 70:1 reverse split for the trading shares and a restatement of the AS for 500M.
We still don’t know what Dr. Sillitoe’s evaluation revealed to AURYN’s management, but based on the last reports from progress on the Caren Adits #3 & #2, including the Larissa adit, I have confidence there is a plan to exploit this area with a positive cash flow. Will there be a time that AURYN buys back the claims from CDCH? I don’t think they can do that unless and until CDCH qualifies to move up to the OTCQX® or OTCQB® tier of OTC Markets. AURYN would likely have to have at least a year of audited financials before this could occur and meet certain other requirements.
Bottom line, this whole thing is F#%^ up, and without AURYN, we would be 100xF#%^ up.
My only recent mistake with this stock is I should have converted IRA to a Roth this month and not Jan
This is just a nightmare that is all my fault because I got suckered in with this board and all the BS.
Maybe one day I will wake up and a F#%^! ing miracle will have happened.
TDK
PS - MDMN to CDCH to whatever I am sure is the next F#%^! ing I will get.
I’ve come to the realization that I lost everything I invested here. Maybe one day I’ll wake up to Madman dream of this investment taking off. Lesson learned
Most shareholders have accepted responsibility for the decisions and mistakes made over the years in this investment. As WIZ said, it’s all water under the bridge at this point. If there’s one thing to be learned from the posts on this forum lately … get busy, busy with living!
Its really not that bad. The lack of transparency on Auryn’s part has lead to runaway negative speculation and the let down that the financials didn’t clarify things. A big JV with Freeport, start of a “massive” exploration program, full production on the Caren and reopening of the Fortuna all could turn things around very quickly. It still appears that Auryn wants the price of Cerro to go up at some point, just not clear if it won’t be till the end of the year. I expect little further dilution of Medinah’s position in Auryn/Cerro.
Problem is so many can’t live live the way they would have liked to due to investing so much into it. Some will never realize because they passed on.
These heavy (now foolish) investments were based on lies from a POS that is walking around free after stealing our money.
Millions of dollars stolen. This is no misdemeanor and if I have anything to say will end up as American Greed classic.
Let’s hope for recovery but I stand by the fact assets are now under CDCH which is a public co and they need let us know WTF is going on.
I agree with Karl that shareholders have a right to know.
A simple news release saying we are on track in accordance with steps we have previously publicly outlined would assuage most fears. That would be reasonable - as new management KNOWS they told us they were going to be more transparent and we were on the cusp of production a year or so ago. The fact that management has NOT properly updated us can be reasonably interpreted that things are NOT going as planned. Shareholders are reasonably concerned, no two ways about it.
If you believe that you did not do your job going after Les with the existing settlement and it should have been expand to JJ family and friends as well as others.
BTW Auryn is just as guilty! First they did not check with the transfer agent on the actual outstanding share count, very poor DD in my opinion prior to the deal being done. I would say if they caught that at the time things would not be so bad later. Also Letts was on the board and he did not catch it, as well as others that were not raked over the coals. The biggest item is that Auryn never lived up to their original deal they struck. I believe it was $100M and 15% . So yes I want what is fair and equitable. JMO
The CDCH deal without a cash transfer, transfer of equipment, assets, capital, people and operating expenses from Auryn appears like a screw job especially since we are an owner of Auryn and not just the property titles. The whole purpose was to build a balance sheet as a reputable company move to a higher exchange and then as a company get debt financing. That is not what I see from the CDCH balance sheet. None of that happened with the transfer of property titles and that is why in my opinion it looks like a sham. That may change, but for the most part what I see is heavy and continued dilution to MDMN shareholders in the future.
I think I’ll stick with the opinions of the securities lawyers, in Nevada and at the SEC as to whether I did everything possible and whether the current BOD chose the right path.
Karl, you’re really smart, but you may want to rethink some of what you think you know. There was ten plus years of malfeasance allowed in multiple countries on a non-reporting pink sheet stock that has no assets to its name other than some shares in a private Chilean company. Good luck, finding the solution you’re looking for in that mess.
Oh, and I did mention no money, right? Try building a legal defense and an offense with that. And good luck finding an attorney who will take the work on contingency. They only take sure things on the recovery side.
Yes, you are right - if one BOD member checked with the TA in 10 years, it would have been over or that BOD member would have had to been complicit. Now, it is not every BOD member’s responsibility to do so, but LP should not have been running the corporate books and communicating with the TA for that length of time.
Now you may understand part of the problem from a legal perspective. Nevada law protects the BOD based on negligence, i.e. it is the company (without any money) that is responsible for any legal costs in their regard. Nevada law didn’t protect LP because of his actions. However, given the length of time it was allowed to go on with no oversight, and the nature of how it was being done, the only option is the path we chose. We salvaged what we could.
Not that bad? I am not sure how over the past year many of us created this illusion that things just might work out for us in the end. If we had just stayed grounded, diligent, and cautious, perhaps anyone who averaged down might have been reluctant to do so. Are you still averaging down Mike? If so, good luck with that…
Yes, but that does not address the original deal that Auryn backed out of, the fact the Auryn never checked the share count which was totally their responsibility in doing DD, and the fact that Les got away without any financial restitution and well as JJ and others.
Yes I might not know everything, but I do know what is right and one thing for sure after all the time and effort Auryn’ has put into this property, I see no reason the entire company was not transfer to CDCH and not just the property titles. That makes no sense, since we are owners of Auryn and not just the property titles.
You can reply all you want, but it will not change the fact that it looks like we are being taken to the tool shed once again and perception is usually reality.
Yes I have and continue to do so. At times, I feel like I am the only one that is still doing that. Thanks for the good luck wish… I probably will need it!
Hey WIZ,
What was actually “recovered” from the judgment against Les?
Maybe we should keep suing on behalf of CDCH as some have suggested and see if we can “gain” an additional settlement of $408K!
Les is sure to make good on it, right?
Yes Mike. I am quite sure it is safe to say you are the ONLY one still averaging down at this point. Although, you might want to wait until we get into the .001’s before buying more…
How many Medinah shares owned by Auryn and friends of Auryn? I’ve lost count. As I remember they are invested in the 7c range. I’ll take a guess it would be in THEIR best interest to proceed in a method that would, at the very least, allow them to break even on the open market. Or…Auryn and their friends can afford to just piss away millions of dollars.
