Nobody will be left without certs for the private company. It’s anybody’s guess how the shorts will or won’t be impacted by this spinoff but the Medinah Gold situation is not comparable. Shareholders got screwed with Medinah Gold because insiders (Les, GC, JJ, Vital, Gary) basically stole the company through the merger with AMNP. Not surprisingly the same insiders have driven AMNP to a near worthless value ($1M market cap) so it may not have made a difference.
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The problem is my Roth IRA soon to be private CDCH/Auryn shares get kicked out into that cruel world of taxable income. Why not just split CDCH into 2 public companies? May need to sell CDCH and buy MDMN in the Roth. I don’'t like the spread on CDCH
Is it possible for a subsidiary to be formed with all the shares restricted or perhaps a different class of shares that are restricted in the same company?
One of the primary reasons to not form a public company is the cost of formation and the ongoing costs of maintenance via filings, lawyers fees etc. A PRIVATE_CO can be maintained for almost nothing.
Liquidity is very limited and IRA is not an option is it?
Yes. But liquidity is very poor in CDCH (and even MDMN) now anyway.
I am not a tax advisor, not an accountant, not a lawyer, so this is completely non-official
reading this: http://finance.zacks.com/can-ira-hold-closely-held-stock-8563.html
I conclude: I don’t think the limitation is federal law, in regard to holding the private company shares in your IRA. In other words: I don’t think there’s a law against it. But you may have to find a different broker or even find a custodian for a self-directed ira and then transfer your account to that custodian/broker. Schwab, for example, says they will hold private company shares in your brokerage account. I don’t know about an ira or not.
so I guess on first blush, I don’t think you are forced to liquidate the ira. but consulting with a professional is probably a good idea, and it is likely to be a pain in the a$$
Thanks CHG
Yes, funding costs have been a problem all along, and are more severe now than ever.
Private company does seem not only the best solution, but also the only solution.
Thanks for all your comments.
Yes I am aware it is different but not as much as you think. Since MG did not trade and shareholders held their own certificates, yet for some reason a merger could happen without all the shares being tendered. What does not make sense is if America Sierra did not get all the certificates how could they own 100% of Medinah Gold. Like I said before I never trusted the Days and now it appears the feeling was with good cause. I see very little difference between the Days not fulfilling their duties as transfer agents in light of a merger of Medinah Gold and what is now happening with CDCH.
I hope you are right and no one gets screwed, just saying if they could screw you with certificates in a merger I do not see why they can’t screw you with certificates in a private spin off. JMO
This is where you seem to not understand the MDMN Gold transaction. Apples and oranges. I’m not worried about it.
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You are probably right, I probably do not fully understand how ASC could either acquire or merge with MG without getting 100% of the certificates exchanged.
But I did know the Days were not to be trusted and they were the transfer agent for the MG transaction.
Question for Baldy:
You have not commented on the SEC ruling against Christopher Day. Since you have had some contact with the Days I’m sure all of us would appreciate your thoughts as it relates to ARTCO and CDCH.
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I’ve never spoken to Christopher and I haven’t commented b/c I don’t feel it will have any impact on CDCH. Patrick has followed through on everything he’s promised and the shady dealings of his brother don’t surprise me. I’ve grown to learn that this whole group lacks a level of ethics otherwise assumed in the real world. That’s why both stock are trading under 2 cents.
I have to admit that you are not too far off in your assessment of the current situation. I wish it was not like this, but it is what it is.
Thanks! Appreciate the response.
Well, tomorrow is Friday!
Let’s see if it is out THIS Friday.
Hoping it’s a good Quarterly Report.
So what are we expecting here? When will we see this start to move if ever? Do we put this to side look at it in a year or maybe sooner we shall start seeing a slight climb north. This price is killing me
The “yield” sign will be lifted from OTC trading after the Quarterly Report. Not expecting much of anything in the Quarterly Report that hasn’t already been extensively discussed on the forum following the SHM. Perhaps the record date that will effectuate the market change to move current shareholders to a private holding company will be coming out soon, also. Regarding shares in the private “holding company” … all shareholders of CDCH will get their pro rata shares (i.e. percentage will remain exactly the same), even if a reverse split occurs simultaneously. This will keep the 5% equity interest in AURYN attributed to current shares intact. Shares of CDCH will remain free trading after that date, but some level of dilution after the split is likely to occur to fund any unmet funding of the $1.75M Rights Offering necessary for the La Serena proposed project. I very much like the proposed La Serena project and the newly elected BOD, but how soon a turnaround after the reverse split (and resulting dilution to finance) depends largely on how quickly we see positive results from the La Serena project announced and resulting market interest. There will be no value attributable to 5% of AURYN associated with the free trading shares after the effective date of the market change.
Excited to see where this ends up going, hopefully we get some form of update on the reverse or progress with new ventures.