My entities have held Partly Paid shares since issue, and I have enjoyed the full dividend received, even though this was unfair to shareholders with F/Paid shares. The Board call to pay the 40cents is probably overdue and certainly necessary before embarking on a strategy to finance Casposo. My view is that there needs to be a balance between Debt, Institutional placement and Right issue.
Taking on Debt is currently a NoNo however I think we need to get back to commercial reality and balance. Troy is profitable, with a long term, sound future, and there is a case for judicious borrowing, on long terms with the right to repay early, without penalty.
The directors should gauge the appetite of shareholders to support a Rights Issue, and then consider a limited Institutional placement. Shareholders could hardly complain if they are given this opportunity.
The calling of an EGM smacks of pique and outrageous on Mr Jones part. He holds some 13% of Troy and wishes to sack the CEO and two Directors and install his own men, one his advisor. In other words take CONTROL of Troy. Stating the obvious, these Directors if elected would be legally bound to represent the interests of ALL shareholders. Could be a challenge for them and a serious loss of focus and expertise to Troy.
Mr Jones should stand aside and allow the TROY baby to grow. Not attempt to hold it back, so that ALL shareholders can enjoy its bright future as a gold producer.
It would be remiss of shareholders to vote for the removal of Mr Benson, Mr Naylor and Dr Clark and enable the Jones Boys to control Troy, holding a significant but relatively low percentage of Troy’s Issued shares.
To make matters worse, the calling of an EGM is counterproductive and could make raising development capital much more difficult and expensive.
Disclosures: My Entities have held Shares in Troy since listing in 1987, and are in the 20+ list.
I know one of the Directors, but have not conversed with him for over 2 years. I intend to contact the Chairman soon, to register my deep concerns.
Jubilee.
TRY Price at posting:
$2.06 Sentiment: Buy Disclosure: Held
