Because of PALA Investments (who hold 19.9% of KAS), avoid like the plague (at the moment).
I have kept an eye on KAS over the years.
I was a regular investor in KAS some 3 or 4 years ago.
I used to have shares in other companies that PALA and it's Russian Oligarch owner (Vladimir Iorich) took an interest in.
Bad news indeed.
I learnt not to buy into any company where the Russian Oligarch and PALA is involved - very bad news for retail shareholders.
PALA would attempt to drive small cap mineral companies into Administration and then come in with a rescue package, that rewarded PALA only.
Stay clear, way... way clear.
If PALA are true to form, KAS will go to less than a cent, and then perhaps even into Administration.
PALA love shares that are in Administration, especially mining shares with mineral deposits they want.
This is the way the ruthless Russian Oligarchs work, and the owner of PALA, Vladimir Iorich, is no different.
Here are some quotes from The Globe and Mail research article on PALA. You can easily find the article on the web, and it's probably been posted here before.
For instance, PALA amassed 19.9% in Neo Metals. When the CEO of Neo flew to Switzerland to seek out their largest shareholder for a meeting, Iorich refused to speak with him and remained ensconsed in the PALA offices behind glass walls.
This is the kind of behaviour and attitude you are dealing with.
(Quotes - from the Globe and Mail research article into PALA)
PALA has engaged in a series of bitter skirmishes with several TSX-listed and Canadian-based resource companies in which it has invested, including Neo.
Pala often turns activist, launching hostile takeover bids and heated proxy battles. It has publicly denounced management teams and demanded board seats. The 50-year-old Mr. Iorich, however, has remained silent throughout Pala's various battles. (The Russian Oligarch declined requests for an interview.)
Less than a year after Mr. Iorich turned down the meeting with Neo's CEO, Pala launched a partial takeover bid for the company.
Pala offered to buy an additional 23 million Neo shares, which would have increased its holdings to more than 40 per cent, giving it de facto control. Neo successfully fought off the partial bid after investors approved a new shareholder rights plan and the Ontario Securities Commission upheld the defensive move, thus foiling PALA's attack.
Critics and targets of PALA's aggressive tactics complain that PALA is taking advantage of the market downturn and battered share values by zeroing-in on vulnerable companies to buy valuable assets on the cheap.
"There is no question they have very good legal advice and they are smart. They are very good Vulture Opportunists (VO)," said David Copeland, Vancouver-based chairman of TSX-listed Rockwell Diamonds Inc., which is engaged in a proxy battle with PALA.
After gaining a near 20-per-cent stake in Rockwell, which operates alluvial diamond mines in South Africa, PALA launched a hostile takeover bid for the company last year, but abandoned the offer amid the market meltdown last fall. Mr. Copeland said that, in a conciliatory move, PALA was then offered a seat on the board and the right to select two (2) independent directors (just like KAS has done !!).
Soon after they had 2 directors on the board, PALA launched the proxy fight and a slew of public attacks against Mr. Copeland and the company's management, accusing them of "flip flops" and of acting to the detriment of the shareholders' interests. Rockwell shareholders will vote later in June on PALA's proposal to oust three of the company's executive directors, including Mr. Copeland.
"I believe their overall game plan is to solidify and take control of public mining companies. Once you've done that, it gives them a lot of flexibility to entertain a number of scenarios," Mr. Copeland said.
Vladimir Iorich (as PALA), in addition to his contentious investments, has also quietly invested in other resource-related Canadian firms such as Gemcom Software and Norcast Income Fund. Both companies were then taken private !!
Like officials at many other PALA holdings however, Mr. Dowling (CEO of Anatolia Minerals), and many other CEOs of companies that PALA has invested in and tried to take-over, have never met Mr. Iorich.
(End Quote)
So then, ... have any of the KAS board members ever met with, or even spoken with, Mr Iorich of PALA Investments?
Red flags, and red lights, and emergency sirens going off everywhere here.
Seriously beware, and it can't be stated in strong enough terms.
While PALA is invested in KAS, then you might want to learn from some old prior investor experiences, and from independent research articles like those mentioned above, and do yourself a favour, and ........................
AVOID LIKE THE PLAGUE !!!
And of course, as usual, I could be wrong, the above is just my my humble opinion, from some recent research I have done.
DYOR, and good luck.
Gw
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