So, the exchange rate on the MDMN to Auryn is now 200 to 1? Am I incorrect in thinking it was more like 1 to 55?
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I remember the number being thrown around on the board by Wiz was .0056 or close to. Close to the 200-1 ratio
For every 1 million shares you owe you get 5600 shares of Aumc. Please correct me if I am wrong
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That number is the price ratio of MDMN to AUMC based on share ownership. It makes no accounting for MDMNâs debts or operational expenses. We donât know what any conversion, allocation, or distribution is going to be or when it is going to happen. All we know is that management has indicated that is their intention, and I believe them. Itâs the only way for shareholders to get real value for their MDMN.
My personal view, I am counting on getting 5,000 AUMC for each 1,000,000 of my MDMN. And I own many millions.
I donât think about MDMN. If you asked me how much MDMN I own, I couldnât tell you unless I worked back from the AUMC shares that I ostensibly own. I made the calculation and know my AUMC number. If you woke me up out of a deep sleep and asked me how much MDMN I own, I would probably answer none. If you asked me how much AUMC I own, my total would include the AUMC after a 200 to 1 conversion.
I know others donât see it that way. I also know a conversion isnât guaranteed. I know people trade it or have other needs for liquidity. I get that. Itâs just not how I have chosen to deal with it after having gone through LPâs malfeasance and dealing with the litigation, the preferred shares, and the SEC.
People donât understand - our shares were pretty much worthless given the preferred situation and the shenanigans. Thatâs why I keep my head buried in the sand and tell myself I own AUMC and not MDMN. I am still suffering a form of PTSD from that time!
::: and sorry if I offended those with PTSD from war, but the psychological wounds are deep :::
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DD,
Yes, that was bantered about for quite a while. At last report Medinah had 2,882,282,073 shares outstanding and 16,104,20 shares of AUMC for distribution. Medinah did not go through the 100 for 1 reverse split so [(2,882,282,073 Medinah shares/100 )/ (16,104,20 Auryn shares)] = 0.0056 as the conversion factor. Using that conversion factor it would take about 178 MDMN shares for each AUMC share distributed. More recently, Wiz mentioned a rounding down of the original conversion factor (0.0056) for simplicity to just 0.05, which was incorrect. Actually the RS was already incorporated and it should have been rounded down for simplicity to 0,005, if at all. This still assumes MDMN goes through the equivalent of the reverse split the same as CDCH went through when shares were reduced to just 70M AUMC. Using the ânewly roundedâ 0.005 conversion, MDMN shareholders will receive 1 AUMC share for every 200 MDMN shares (1 Auryn share / 0.005 MDMN) = 200 MDMN shares per 1 Auryn share. Those are just âball parkâ figures.
So what I would foresee as a reasonable management plan to retain all shareholder value is for management to file financials and become current with filings. Showing a positive cash flow for AUMC for several or more quarters will be necessary to allow ânormal tradingâ in MDMN. I would add current shareholders actually have an advantage before any divy announcement and ex date and TBA distribution date is announced if managment does as Iâm suggesting may already be their current plan. With vigorous trading, I would look for a 10Xer before distribution that would protect current cert holders and fairly value beneficial share holders held by a brokerage. Allowing MDMN to trade for a while to increase in price based on AUMC PRs and progress would raise interest in AUMC and MDMN. This would facilitate MDMN cert holders to convert certs into free trading AUMC shares placed in a brokerage account. No, I do not hold any MDMN certs, but if I did I would want management to do everything necessary to insure I have entry into the market equal to that of beneficial holders. Unless this is done, cert shareholders would be disadvantaged into placing any ânewly convertedâ AUMC certs into a brokerage.
Management is obligated to put the interests of cert holders above those of beneficial owners who can trade the unrestricted AUMC stock immediately once it is released as an unrestricted AUMC divy. There may be a hold restriction for a period of time after release as was done with an MDMN divy in the past.
At the current bid of 0.0015 a 10Xer would bring each MDMN share to 0.015, historically not a high price. Currently Medinah (0.0015) is the kind of stock that is under the radar and âunlovedâ until it starts trading vigorously and freely based on AUMC progress (and an imminent distant distribution plan). What it really means to shareholders is that when Medinah gets above 0.015, for every 200 shares of Medinah shareholders will have a $3.00 worth of âdividendâ AUMC thrown into existing freely trading AUMC which is tightly held. A share price in the several dollar range would also allow AUMC to use some of itâs 30M treasury shares to advance projects more rapidly. Management has committed to treating all shareholders equally and fairly and has indicated it is on track to do so.
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Itâs not just grade that counts. Growth and momentum is what will drive Auryn, and MDMN after financials are filed. Auryn is on a path to increasingly greater production Qtr to Qtr with itâs proven high grade veins exploited firstâŚ
Top Gold Stocks for September 2021
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As long as they generate $1 in revs you will be spot on with the sequential growth forecast. I wouldnât be suprised if they generate some revs in third quarter but actually lose money. Impossible to say given how little is actually disclosed in the financials but itâs not a stretch to see the company losing money over the next three quarters as any profits need to start paying down the line of credit./loan.
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Growth and momentum , âGrowth and momentumâ. I sure agree with that.
Many a start up company or a mining operation has blown itself apart,
or strangled itself, trying to juggle those two things. It takes a very good management team to pull it off. My fingers are crossed while I wait in the darkness. Good luck to all. C.s.
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Yes, whatâs not to agree with? 
Some here equate increased production with only profit, and fail to realize that most often it takes many years for a startup mining company to become profitable once mining actually begins and permits are expanded. These profitable companies will show EPS, which is not the only indicator of share price. From my experience, early startups will garner attention that leads to increased stock buying activity once increased production and revenues begin. This accelerates as word gets around via PRs and blogs as to what progress is being made. While penny stocks in this stage are notoriously volatile, largely due to speculation and daytrading, MDMN is in a unique position balancing fear against hope of financials being accepted and released. Until this is done, MDMN can make no announcements, as it is essentially a dark company in the process of becoming current in itâs filings.
AUMC is not a day trading stock (it has a minisucule, tightly held share base), and will largely advance only on increasing production, which will lead to increasing revenues shown in quarterly reports and notices to shareholders. I doubt there will be many AUMC shares shaken loose before a divy announcement is made for current MDMN shareholders.
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Well Bald Eagle, allow me to offer that paying down debt is not an âexpenseâ, so it has nothing to do with âearningsâ. However, you are maybe suggesting that the company electing to pay down its debt PRIOR to any dividend will delay the dividend while that debt is being paid off. No problem there. But people who are not skeptics might have a reason to believe earnings will affect the price of the stock - when the debt gets paid off (and it might be faster than you think, to be fair maybe not) and we spend a few more bucks scaling up in order to get all faces working in the Fortuna and Caren, we will be closer and closer to a dividend. My bet is we will all be very happy. If MDMN goes to 3 cents, I will have made a LOAD of money. Iâm under no illusion this will happen in a few weeks, but I would like to be pleasantly surprised.
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The loan is not being recognized until if/when they generate enough revenue to repay it. At which time the loan will need to be recognized. Also, the expenses that incurred will need to be recognized. So it will show up on the P/L
Youâre saying that debt amortization doesnât impact net profits?? Iâd agree that the debt repayment doesnât affect EBITDA (earnings before amortizaiton) but it does effect profitability. This being said, the debt wonât start to be paid back until there is actually profitability which could be a ways out. I assume there will be some revenue but the associated cash flows will really be determined by the tolling agreement with Enami (which can be brutal for uber scall scale producers) along with reinvestment to scale the project. Iâm certainaly not fixated on EPS (especially in a pre-revenue investment) but have offered my opinon that $20M let alone $50M in annual profits over the next 5 years is extremely unlikely. Iâll pocket any discussions on dividends to BBâs perpetual LaLand projections.
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Iâm wondering which brokers are allowing buys of MDMN, since so many have restricted their clients from buying ?
Is it just the market makers now doing the buying (accepting the sell orders), or are there some brokers allowing clients to buy ?
If itâs just the market makers then the market makers are probably trying to cover their short positions.
COULD ANYONE PLEASE POST WHICH OF THEIR BROKERS ARE ALLOWING TO BUY !
Thanks,
Rod
Correct - debt is not âamortizedâ. The principal portion of debt is reduced as it is PAID - when it is on the balance sheet.
On the other hand, the portion of any debt payments which is allocated to interest is an expense, which indeed belongs on the P&L. Therefore, interest expense affects earnings. The moneys âloanedâ to us by the gracious benefactor (thank you) are interest-free. Therefore, there should be no effect on earnings either way.
Jimmyp1127 astutely points out that the debt owed to our gracious benefactor (thank you again) has not been booked. But we have learned from sources that the debt must be paid pronto. No problem from me on that. So, one might conclude that from a cash flow perspective the debt will be paid from profits before we go anywhere. Investors are free to regard payment of the debt as a relatively small bump in the road and project future earnings accordingly - ultimately in anticipation of scaling-up and dividends.
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Canada ⌠Royal BankâŚRBC DirectâŚ
I can still buy shares through Interactive Brokers.
Canada TD Waterhouse
Thanks KTown & Rich & Taff
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OTC Markets | MDMN | Disclosure | OTC Markets
My guess . . .
Next comes the attorney letter, perhaps some more back/forth with OTC, then removal of STOP sign.
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I bought last week through TD Ameritrade at the ask.
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