The recent capital rising of the princely sum of $200K needs to be considered not only as an emergency capital injection but also as the first step in the process of defending the positions of the current management.
The upcoming voting on the 7th of December will be like presidential election Afghanistan style.
The directors will try to keep their positions by hook or by crook and we should expect additional manoeuvres designed to dilute the existing shareholders and buy votes for the current directors.
The “sophisticated” investors, who were given approx 15% of the company shares at 2.5 cents should be prevented from voting on the resolution to remove the directors. This action was not about raising $200K but it looks like a bribe to new shareholders – the “sophisticated” ones - to support the directors.
Since they need a lot more than 15% votes to keep their jobs, I would expect an imminent capital rising where all the directors and their friends would fully participate to substantially increase their holdings. At 2.5 cents per share which is 90% below the IPO price this could be possible, assuming that many investors who lost most of the money on this company may opt out this time.
In order to relieve the directors from their duties, which they have demonstrated to be incapable of performing, I am waiting for the opportunity to load up on cheap shares and vote them against this bunch.
TGX Price at posting:
4.5¢ Sentiment: ST Buy Disclosure: Held
