That could be what the future path is, I’m sure you shared your insight with CDCH management, but as you have already admitted, it is pure speculation on your part. Using CDCH as the mechanism for an AURYN IPO is rather brilliant, but CDCH is not “clean” in it’s current filings status. It would need to clear any regulatory hurdles. Note: this conversation should be continued on the CDCH thread.
Also, it in no way conforms to the proposed CDCH upcoming “annual meeting” as outlined in the March 31, 2017 update found here: http://cerrodorado.com/?p=425
How does it allow for protecting current shareholders as outlined in Implementation of non-dilution mechanisms for existing Cerro shareholders? The announcement states:
Cerro will make a dividend declaration to the shareholders of record as of the date that Cerro sends notice of it Annual Meeting of Shareholders.
This actually should have stated that “holders of shares of the Corporation’s common stock that are:(i) held directly in your name as the stockholder of record; or (ii) held for you as the beneficial owner through a stockbroker, bank, or other nominee” as of the date that Cerro sends notice of it Annual Meeting of Shareholders. This change in wording would include all current shareholders. Perhaps the wording will be changed at the annual meeting. If the CDCH BOD is willing to forego the opportunity to pursue the Andacollo Mine opportunity, then the “reverse merger” with pro rata shares for current shareholders into a newly named AURYN IPO would be clean, provided it clears the SEC requirements. I note: “Mr. Borquez has been negotiating to a US$ 500,000 down payment with subsequent payments coming out of the mine’s cashflow. We have had initial discussions with Mr. Menzies about having his investment group consider assisting with funding larger opportunities, and will be discussing the Andacollo opportunity in more detail in the near future.” This would conclude in a separate venture without ties to CDCH. IMO
Conflicts of interest should be avoided.
The last thing you posted on the CDCH thread concerning Implementation of non-dilution mechanisms for existing Cerro shareholders is the most important and correct solution, IMO.
As it is unlikely that CDCH raised the $300K, it more likely that AURYN did extend the terms of the cash call for a small percentage being returned back to AURYN, IMO. The mechanism for issuing “dividend shares” in AURYN cannot reasonably be accomplished until CDCH becomes current in it’s filings. Again, pure speculation on my part, but the CDCH “shell” for future additional mining opportunities being discussed in the shareholder update could not occur even though the capital structure is clean. CDCH would essentially revert to a holding company until the OTC and FINRA remove the stop sign and all past filing become current and AURYN IPOs. CDCH would have difficulty declaring and issuing a dividend. A NOBO/OBO list may have been obtained in order to issue paper certificates to all known and identified shareholders as of the date of the annual announcement. This would allow current shareholders to retain the equity stake in AURYN until an IPO occurs, and allow Management to pursue the additional mining acquisition opportunity in the Andacollo Mine with a CDCH shell. Full disclosure: I have already expressed these concerns to management. The annual meeting will reveal what has been decided by the BOD of CDCH, along with consultation/negotiation with AURYN management.