Last year CNQ made what they labeled a "priority offer" to its shareholders. In a 01/05/2012 ASX filing CNQ "encouraged [its shareholders] to lodge an application for Gossan Hill Gold shares as early as possible" at an offer price of $0.20 per share, valuing Gossan Hill at $4.4M (22M GOS shares outstanding, see page 7)
Little more than 10 months after that, CNQ agreed to sell Gossan to Sovereign Gold (SOC.AX). In a 12/03/2013 press release titled "Sovereign to acquire Gossan Hill Gold Limited" the company reports:
"The material terms of the Agreement are: 1. consideration for the acquisition to total up to $700,000."
Three days later Sovereign Gold issued another press release stating:
"Gossan Hill Gold Acquisition Acceptances reach 91% 29,050,000 shares have accepted into the Gossan Hill Offer representing 90.78% of the issued capital of Gossan Hill"
What it means is this: During 2012 CNQ offered Gossan to us for $4.4M or $0.20 per share. Less than a year later they sold it to Sovereign for $700k or 0.029, that's a discount of 84% compared to what they wanted from us.
I can hardly imagine anything that could more drastically express CNQ's disrespect for shareholders.
CNQ Price at posting:
5.6¢ Sentiment: Sell Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)