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Orefinders Concerned as Mistango Dilutes Itself by 41% in Entrenchment Financing, Continues to Sell Off Assets at a Discount
Orefinders Concerned as Mistango Dilutes Itself by 41% in Entrenchment Financing, Continue...
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[{"type":"text","content":"\n\n\n\nOrefinders Concerned as Mistango Dilutes Itself by 41% in Entrenchment Financing, Continues to Sell Off Assets at a Discount\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, June 24, 2019\n\n\n\nTORONTO, June 24, 2019 /CNW/ - Orefinders Resources Inc. (\"Orefinders\" or the \"Company\") (TSX.V: ORX) is disappointed to announce that Mistango River Resources Inc. (\"Mistango\") (MIS:CSE) has rejected Orefinders' offer to arrange an arms length financing to be done at a premium to the Canadian Stock Exchange's minimum share issuance price of $0.05. In turn Mistango announced on June 20, 2019 that it is completing a discounted flow-through share issuance at $0.022 per share. This $0.022 per share financing amounts to a minimum of a 56% discount in share price to what Orefinders had offered in its June 18, 2019 news release. Furthermore, Mistango is issuing 15,909,090 shares from its 38,073,481 shares outstanding which amounts to 41% dilution to existing shareholders. \nMistango's financing is a flow through share offering, meaning that the true cost to the investor, depending on their tax bracket, could be in the 1 cent range. Perhaps most concerning is the inclusion of the sale of a 3% NSR on all Mistango's assets, including Mistango's only asset of substance, the Omega Project. Given Mistango's financing transaction was a combined share issuance and royalty sale, Orefinders questions the assigned value of $150,000 for these royalties. Orefinders believes these royalties are worth substantially more which would imply an even further discount the true value of the per share price issuance.  \nWhy is Orefinders concerned about these entrenchment tactics?\nMistango's management and Board of Directors have demonstrated a pattern of liquidating assets, which belong to the company's shareholders, in order to fund management salaries, office rent paid directly to the CEO Robert Kasner and exploration and travel expenses above and beyond the salary of his son, COO Donald Kasner. Additionally, we note Donald Kasner recently took out a $11...