It doesn’t take a “Captain Obvious” to surmise that a lot is going on “behind the curtain” of AURYN for strategic reasons. I base this on our CEO’s recent resignation from the role of AURYN’s Communications Director and his Dec 13, 2016 detailed message where he clearly states, “AURYN may hold back the release of public information from time to time for its own strategic reasons…” Agen IBCBET : Situs Judi Bola Online Terpercaya Pada Link Daftar IBCBET
Apparently, things have changed substantially since then (positive changes are still unfolding), and NOW is one of those times that information is being held back by AURYN for strategic reasons.
Daily trading volume and SP is not reflective of the vast majority of current shareholders.
Along with the cash call, AURYN has separated as a subsidiary from MASGLAS and is now a stand alone private company. AURYN clearly has a plan and strategy on becoming profitable that is not being communicated publicly at this time. While regrettably this does negatively affect the current SP and trade volume of MDMN, it has already been communicated by Karl and others that things will likely change when AURYN files an F-1 with the U.S. Securities and Exchange Commission and becomes a fully reporting company.
I think it’s critically important for people to understand that the “IPO” planned for later in the year should NOT be compared to a traditional public offering. We are talking about a company that will be pursuing an OTCBB listing which doesn’t require a PR blitz, roadshow, or anything else associated with an actual IPO. This isn’t going to be much different from a reverse merger where a private company merges into a shell. While I’m sure Auryn wouldn’t mind a few extra shekels of working capital in this process, IMO this IPO will NOT require a capital raise. This is simply a step towards becoming a legitimate, public company and MDMN shareholders will get their pro rate shares and then go away. IF they are able to hit the vein, which clearly has not happened yet, they have a very good chance of supporting a $40-$60M market cap (wide range for a wide set of variables).
If we assume MDMN holds 30% of Auryn we are talking about a .006 price on the high end of that range. With that in mind, we are probably trading at fair value (if you assume they find the second vein). I don’t think anyone here is sitting on a profit but I would advise folks to wait a bit and evaluate the potential arbitrage between Auryn the public company and where MDMN is trading.
Yes, the potential exists for Auryn to reach a higher valuation but we will all have a way better sense for the geo potential before that turns out to be the case. I know that I’m waiting to get more clarity on the upside potential before cost averaging down and I’d encourage everyone to place a heavy discount on some of the wild speculations. One only needs to to have a precursory understanding of the mining industry and comparative valuations to properly assess the risk/reward from here.
Don’t get sucked into the penny stock ridiculouso that still finds it’s way onto this board.
John, everyone appreciates your insights on this board, some more than others. I bolded what you have clearly stated as fact. Unless you have been on the mountain, you just as clearly do not know what veins have been intersected or just what news will accompany AURYN’s F-1 application.
What is clear, AURYN is a serious company making a serious effort to bring profit to shareholders going forward. You are wise in waiting to get more clarity on the potential upside before cost averaging down, which is exactly what I see from the extremely low volume ( a few hundreths of a percent of OS on the best of days) and the current PPS. I believe the majority of shareholders, especially those with significant positions are also awaiting significant news. I know I am. I agree with your wait and see strategy. Caution is clearly warranted in MDMN (as stated on the OTC site):
Cautionary Statement and Forward-Looking Information
This news release may contain certain and forward-looking statements are within the meaning of the United States Securities Exchange Act of 1934, as amended. This forward-looking information includes, or may be based upon estimates, forecasts and statements of management as to expectations with respect to, among other things, the completion of transactions, the issuance of permits, the size and quality of mineral resources, future trends for the Company, progress in development of mineral properties, future production and sales volumes, capital costs, mine production costs, demand and market outlook for metals, future metal prices and treatment and refining or milling charges, the outcome of legal proceedings, the timing of exploration, development and mining activities, acquisition of shares in other companies and the financial results of the Company. There can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially and substantially from those anticipated in such statements. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that mineral resources will be converted into mineral reserves.
I think you are fully aware of the conditions of the SEC for Non-Public Submissions from Foreign Private Issuers:
…non-public submission policy is separate from the confidential registration statement review procedures available to “emerging growth companies” under the Jumpstart Our Business Startups Act (JOBS Act). As described below, foreign private issuers that meet the requirements in the JOBS Act are eligible to be treated as emerging growth companies.
Please note that foreign private issuers that are seeking to be treated as emerging growth companies must, among other things, follow the procedures applicable to emerging growth companies with respect to both confidential submissions and the timing of the public filing of their registration statements.
I agree that that the planned IPO should NOT be compared to a traditional public offering. However, even if the original initial issuance is on the OTCBB (as you expect) instead of the OTCQX® , there is every intention of broadening exposure to other markets through the OTCQX® or OTCQB® tier in the future. I expect there will be delays in meeting all requirements of the OTCQX® and becoming a fully reporting company, but that is AURYN’s stated goal. I also have confidence and expect that AURYN will achieve the OTCQX® tier within a year of it’s achieving any initial public offering, if not earlier.
Am I correct in my understanding that we do not know definitively that AURYN is not concurrently listing its securities on a non-U.S. securities exchange? Non-public F-1 filings for first-time registration are permitted to be reviewed and commented on before anything is released to the public. Two years is a reasonable time frame to achieve a supporting market cap for AURYN and resolve all of Medinah’s considerable outstanding obstacles. I do not expect a liquidity event to occur for MDMN’s shareholders before a supporting market cap for AURYN, and if there is a liquidity event, there is little shareholders can do except acknowledge this continues as a risky investment. AURYN’s cautionary statement is a little less specific, but just as inclusive as Medinah’s.
Investing in specific mining companies is filled with company risk and geological risk. If you cannot tolerate these kinds of risks, please consider another investment.
With that said, there is little to be gained monetarily from any current shareholder with a sizeable position selling at these depressed prices. IMO
Yes, there is a big difference between and IPO and a reverse merger. A reverse merger is not considered an IPO, per say and that is why it is called a reverse merger. Yes it is a way to take a private company and go public that does not have the fanfare of an IPO with a propectus, but it is also not what most people consider as an IPO. I would imagine that if Auryn was simply going to go public via a reverse merger they would not have announce that they were going to do an IPO. I guess we will simply have to wait and see if Auryn simply buys a clean shell company to reverse merger into.
I didn’t say this was going to be an RTO I said that it wasn’t going to be much different. Not a lot of volume, sellside sponsorship, or “fanfare.” You don’t get any of those with a company of Auryn’s size. This is simply a means to go public, through an IPO listing. If you are expecting a roadshow and a PR blitz there will, IMO, be disappointment.
I also did not say that the where going to do a road show, I simply suggest that is one route open to them if they chose to go that route. My exact words were:
“They might even resort to the standard dog and pony show depending on their budget, goals, and timing, especially if they are looking to solicit new investors.”
The Auryn IPO will functionally be a reverse split for Medinah share holders if your MDMN shares are replaced by Auryn shares. Unless, of course, Auryn happens to provide us with 3 billion shares of Auryn which can only happen if Auryn IPOs with 10 billion shares authorized and outstanding. I don’t see that happening. Even at 1 billion authorized and outstanding for Auryn, Medinah would receive 300,000,000 shares meaning when dividended to MDMN shareholders you are being reverse split by on a 1 for 10 basis. Put the decimal point whereever you want, but my guess is between 1 share of Auryn for anywhere from 10 to 100 shares of Medinah.
I am with John regarding the IPO. I don’t expect an Dow/Nasdaq type of IPO, but rather a an IPO that sets the stage to JV with a major. I will be happily surprised if valuation and promotion exceed my expectations, otherwise this is primarily an administrative event.
Meantime, I’m getting a little annoyed by the Auryn’s silence on progress(or lack of it?) on the Caren mine and Medinah’s lack of an update on the legal cases. In the case of the later, I assume that is because of ongoing negotiations to resolve the lawsuits. In the case of the former, I hoping it is because they simply are in the process of hiring a new communications/PR sort of person who will start putting out news shortly after being hired.
depends…
do you need to average down? Is your pps significantly higher than half a cent? Can you risk losing more money in this investment?
I don’t think I’d recommend this to anyone right now, and I’ve likely bought all I’m going to buy. These guys don’t get another red cent (or half a red cent) from me until things are headed north. Right now everything seems to be in limbo.
I have been buying any chance I get now below .05, but the volume has been ridiculously light lately like Monday 140,000 shares, Tuesday 721 shares and yesterday only about 32,000 shares in total have traded each day. With no one really buying or selling MDMN it is very difficult to trade the stock. So I agree MDMN is in limbo just waiting for some good news on either the mountain or on the Les Price situation.
