Colossus Minerals (V.CSI) 'last ditch' noteholder deal in doubt, meeting cancelled

Chris Parry Chris Parry, Stockhouse.com
4 Comments| January 6, 2014


A short statement from Colossus Minerals (TSX:V.CSI, Stock Forum) has cast doubt on a ‘last ditch’ arrangement with noteholders to save the company.
 
A January 2 news release announced the company had “received a proposal from these noteholders and Sandstorm Gold Limited (TSX:T.SSL, Stock Forum) which, if implemented would offer the Company the ability to carry on business activities past December 31, 2013 with a view to its potential sale or future recapitalization.” 
 
The deal, which was to have been discussed at meetings with noteholders and shareholders, would have left existing holders of common shares with “massive dilution to the point where they would, in aggregate, hold approximately 1.7% of the outstanding common shares after giving effect to the terms of the proposal.”
 
The news release today, however, announced no such meetings would take place.
 
The note said, in totality: “Colossus Minerals Inc. announced today that the special meeting of holders of the Company's outstanding gold-linked notes called for January 10, 2014 has been cancelled. The special meeting of shareholders of the Company that was called for January 20, 2014 has also been cancelled.”
 
Colossus stock dropped 15.3% on the news to $0.055 per share. The company has a $9.7 million market cap on 175.5 million shares outstanding.
 

Tags: GOLD

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OntarioDave
CSI equity is worthless and likely goto zero... OD
1 star
January 7, 2014
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naeden99
The meetings that were cancelled were called to approve the Arias financing announced December 18th, not the deal proposed on January 2nd.
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January 6, 2014
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rexfrancis
I would like to know where the shareholder meeting for Jan 20 was announced in the first place. I cannot find a record of it!
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January 6, 2014
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naeden99
Rex - good point - I don't know what the shareholders were going to vote on, no notice of meeting or circular was released.
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January 6, 2014
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