BLR (ASX) WUC for sale

Originally posted by Robot42 ↑

More info here slick

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Baobab Asset Management LLC ("Baobab") and Russell Fryer announce the transfer of a total of 1,319,340 common shares of Western Uranium Corporation ("WUC" or the "Company") to six business partners of Baobab. The transfer of these shares (the "Transaction") was completed privately, for a deemed aggregate consideration of approximately CA$1,739,300. The Transaction occurred in the context of Baobab's current reorganization of its investment holdings, which includes, among other things, plans of opening an office outside of North America. In connection with that reorganization, Baobab paid out six USA-based business partners through the transfer of an equity allocation in WUC instead of a cash payment. Most of those USA-based business partners are already long-term shareholders of the Company and have represented themselves to Baobab as continuing stable long-term WUC shareholders. No new control person or insider was created as a result of the Transaction.

Mr. Fryer, a director of the Company, owns and controls Baobab. Immediately prior to the Transaction, Mr. Fryer owned directly and/or controlled (through Baobab) a total of 4,172,275 common shares of the Company, corresponding to approximately 21.31% of the issued and outstanding common shares of the Company. Immediately after the Transaction, Mr. Fryer owns directly and/or controls (through Baobab) a total of 2,852,935 common shares of the Company, corresponding to approximately 14.57% of the issued and outstanding common shares.

Mr. Fryer also holds stock options for further 150,000 common shares of WUC, all exercisable now and within 60 days. If such options are exercised Mr. Fryer would hold and/or control approximately 15.22% of the Company's then issued and outstanding shares.

Baobab is reporting the Transaction as required with the relevant regulatory bodies, and sees this Transaction as a concluding final transaction with respect to monetizing its WUC position. It is the intention of Baobab to not sell additional Western Uranium Corporation shares in the equity market in the foreseeable future.

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The final line is interesting.

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Thanks Robot. Interesting news release. The before/after share totals don't match the SEC filing (the 150k options aren't reported consistently), but it's probably not material. The more interesting question is what is going on with Fryer. He was under a June 30 deadline to raise half a million USD or else his WUC consultancy agreement would be terminated by Glasier. And who are these "six USA-based business partners of Baobab", most of whom are long-term shareholders? Is Fryer closing the US office of Baobab?

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