The Mining Play

Medinah Minerals (MDMN)- 2017 Q4 General Discussion

Cerro reverse merge into Medinah? :slight_smile:

Mike, I’m open to and accepting of anything if someone could explain the logic of doing such a thing to me.

That’s how I’m understanding it. That’s why I’m buying more mdmn at these prices. Seems logical but you never know with this stock.

oz

I agree and I too have been adding daily, added more today at .0035

1 Like

I missed that one. Thanks for the clarification. I don’t use L2 or follow each trade. Just saw the brief spike on the charts. Sure messes up any one trying to use charting method for guidance.
I’ll just call it “over exuberance” for now , then. :slight_smile:
Is there another mechanism, besides a dividend declaration that allows a direct share distribution or conversion? Sure would save the hassle and expense that Medinah shareholders went through the last time Medinah had a dividend declaration? Anybody?

Is that really a possibility?

I believe the best approach would be an exchange agreement where MDMN shares are simply exchanged for CDCH shares. I believe that is the fastest and easiest approach with the least amount of complications for shareholders. JMO

5 Likes

Exactly, tax free exchange like all other companies do it. Hope it doesn’t turn into a cluster.

oz

Plus maybe if they structure it as an acquisition they could pass along MDMN tax loss carried forwards!

4 Likes

How is that accomplished without “freezing trading” to identify who owns MDMN stock and in which brokerages? Typically there is a date of record established for this prior to a dividend issue and a NOBO list requested/ordered for that date to identify shareholders. I sure would like to see how this “exchange” is possible if there is another method that does not involve a dividend.

If you don’t know Easy, I sure don’t! lol

Karl’s idea seems alright with me.

The one year trading restriction would eliminate any short term vs long term Mdmn ownership capital gains issues correct?

It is done all the time in acquisitions made for stock, where one company merges with another company in a all stock deal. They simply exchange one stock for the other. One day you own MDMN and the next day it is CDCH. Yes there is a record date for the exchange, but it all happens automatically in your account. It does not matter if they exchange shorted shares in MDMN, because they simply become shorten shares in CDCH.

1 Like

Is there a chance we could lose our loses from mdmn in our brokerage accounts? I am sure we all have a boatload of them, and was hoping to use them one day…

No they simply move onto to CDCH with your adjusted cost basis, but hopefully those loses will someday turn into profits!

Thanks Karl…I certainly hope so. I just hope the transition goes smoothly. It just seems very complicated. Once the one year restriction is up, I am concerned their could be a massive selloff is we have any significant gains. I also hope making the shares unrestricted will go smoothly. I still remember how we struggled with the dividend distribution…

Thanks, Karl. That sounds great! I certainly would prefer seeing that rather than a liquidation event where cash is received instead. In a liquidation event MDMN shareholders would be forced to accept cash at the rate of 0.558 of whatever CDCH closes at on the date of MDMN liquidation. This would be quite impracticable for acquiring CDCH shares before a year is up simply because there are presently only 350M free trading shares of CDCH. There would be little likelihood of buying back CDCH shares unless all 7B shares were available on the market. I take it under this scenario there would not be a surviving MDMN shell.

One should realize our shares in CDCH will be coming from the 95% owned by Auryn. So Auryn could easily exchange their CDCH shares for MDMN shares and then they retire the MDMN shares. Of course MDMN has to be basically a clean shell with no debt, all lawsuits settled, and of course they would have to consider the current CDCH shares own by MDMN in the exchange, but it is doable and a clean approach making the exchange rather easy. Of course this would likely happen after Auryn’s one year holding period on CDCH shares expires. .

2 Likes

I mean really 5.5 million up for sale .0035??

Unfortunately I don’t believe MDMN will be able to claim any tax loss carryovers given the fraud that pervaded over the years. None of the figures are reliable or auditable.

And as a clean shell Medinah will have some small value, even after all Medinah shareholders are issued out all of the CDCH dividend shares that Medinah will be in possession of. It could be sold, or develop some other activity, but once the Medinah shareholders receive their CDCH dividends whatever happens to Medinah will not impact those CDCH shares once received as dividends.

I am of the opinion that AURYN holding the restricted CDCH shares for the one year holding period is most likely the best of all worlds. During the restricted period medinah shares would be “due” a dividend and trade on the value of that known future dividend of CDCH.

I just saw a 550,000 share trade of Medinah go through at .0035 cents for a cost of $1925.00.
Once the dividend is issued those shares will receive about 306,900 CDCH shares that are currently showing an ask of .0154 cents. To purchase those same 306,900 shares of CDCH today would cost $4726.26. At todays prices, someone looks to have just purchase $4,726.26 worth of stock for $1,925.00.

3 Likes