chairmen selling stock, page-2

392649 - stop stressing...you have your digits mixed up :p

I don't hold GUF but have maintained a key interest in most companies nearing production – as the usual dilution & funding issues have been mopped up – or thereabouts. As most stocks with concentrated ownership (Chairmen & co), its important to scrutinise any "arm’s length transactions".

He only sold a combined 2m shares ($180k worth - almost the full volume for both days) on 10 & 13 January 14. Probably in some attempt to keep the share price down. The real decrease was due to dilution with the 89m shares issues for Springsure indicated resource settlement with further 17m to go (more dilution). Read the agreements, Chairmen's in bed with everyone. All directors are linked and you will notice, they have selected beneficiaries that are deemed not related parties to Guildford, and as no substantial notice has been forthcoming - probably a few "non related parties" on the receiving end of this consideration. See extract from EGM announcement:

“Guildford has issued 89,547,433 fully paid ordinary shares (Initial Consideration Shares) in partial settlement of the Initial Additional Consideration. The Initial Consideration Shares were issued to certain shareholders of Chairmen (or their assignees/nominees) under the terms of the Additional Assignment Deeds. The recipients of the Initial Consideration Shares are not related parties of Guildford. Guildford now wishes to issue a total of 17,262,688 fully paid ordinary shares (Final Consideration Shares) to Chairmen, Nooava Pty Ltd as trustee for the Tsiakis Family Trust and Mr. Craig Ransley in final satisfaction of the Initial Additional Consideration as discussed above. Nooava and Mr. Craig Ransley are shareholders in Chairmen to whom some of the Initial Consideration Shares were assigned by Chairmen. The issue price of the Final Consideration Shares will be $0.082389196 per share

Chairmen buttering up his buddies. Share volume for 7 business days prior to Springsure (29 Nov 13) was large and the price hit all time low of 7.1c at one time, resulting in the $0.0823 per share issue price (the lower the price, more shares they receive as consideration).

This is why I am cautious when a highly influential holder thinks they own a listed company, can execute sale agreements and play with the ultimate shares on issue to better self interest. Would be nice to know who drove the price so low leading up to the announcement, especially at 7.1c when you just announced positive news in relation to resource!

There will be a further Springsure payment. Chairman may have decreased to 29% by assigning rights etc, but has actually increased control by diluting everyone else and assigning it to his buddies.

So, this is actually the opposite of what you thought, your beloved "Chairmen" is strengthening his power by diluting everyone else! Best to see what other agreements are in the wings and wait to pick up stock when they drive the price down to suit their purpose!


Let’s hope they get their trucking permit for Mongolia, but not before Chairmen et al enjoy the benefits of a low stock price!

oh - I also forgot resolution 5, as share price so low, Mr Kane gets more shares for performance:

"Resolution 5 seeks shareholder approval to the grant of 4,758,444 Performance Rights to Mr. Peter Kane, Group Managing Director for the purposes of Listing Rule 10.11"

Cant wait to see how this performance is measured!

Go GUF.