As a shareholder who wrote several times about this company, I am giving one last post.
a) Why has the plug been pulled on the share offer? My opinion is as follows. The success of the offer was subject to a good take-up by ordinary shareholders. Obviously that didn't happen. Thankfully ordinary shareholders who took up options will get their money back. (As posted before, I did not take up any options.) The reason why the directors needed a good take-up, was that they needed this money (from ordinary shareholders) to pay back the special share offers and loans that were made 3 years ago (at 10% per year) to the big boy and special international people. So, while share price has plunged over the last 3 years during the period when the directors and the company "lost its" direction, the international people stood to lose nothing. In fact, the international people actually are expecting to earn +30% and get their loans back. Now there is a problem. Ordinary shareholders didn't fall for the con. So now there is no extra money in the kitty. How does the company pay back these special lenders? Also, how does the big boy extract his loan from a company with more debt than assets? The directors will provide the answer when the trading hault is lifted. What do you think will happen?
b) What to do if you can get any money back from this company? I suggest that you should look around for another small cap miner with better credentials. Do your own research because there are good ones out there. I may be wrong, but I don't think there is a worse one than CGN. I lost 50% of the $24,000 I put into CGN, but at least I got back $12,000 in the nick of time. I have put that $12,000 into SAU. I'll compare the pair. It has about 30 million shareholders, yes 30 milion not 1.7 billion. It paid a dividend of 3c last month from its gold production and a share price of 30c (yes a 10% divi). It has no debt. Also, it does not have a big shareholder or concentrated shareholding (check out the list of shareholders). In comparison, CGN has everything in the hands of the big boy and a tight group. SAU has several great prospects and a flagship mine located near the Kalgoolie goldfields, and it has just reported on very, very high levels of gold in recent drilling results. (Bonanza grade?) OK, I'll stop there because you can have fun doing your own research on new companies. But whatever, don't throw good money after bad. Take it on the chin and move on.
That will do me for me, and good luck to you guys and gals.
CGN Price at posting:
1.2¢ Sentiment: Sell Disclosure: Not Held
