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A big thank you to all shareholders that have been in touch regarding the Shareholders Action Group. The response has been excellent and beyond original expectations. We are now in a position to enter into discussions with the KAV board from a position of strength. However, can I please ask others who are interested in taking positive and constructive action to protect the interests of all small shareholders to get in touch so that they can also be included? All information is treated as strictly confidential.
Please not that once we have entered into the discussion process with the KAV board we will no longer be able to provide any further information on this or any other public forum. This is because the board will require all communication to be strictly Private and Confidential. Thanks for your support.
Thanks to Mr. Robo Mr. Vig and all others that have written to me either via Twitter or Telegram. We have a significant number of shareholders now but still need more to come forward so that we can jointly press the board for some explanations and a better deal for shareholders? Please note that we are not immediately asking for the calling of a GM. We wish to write to the board with our concerns and see their response before agreeing a way forward.
D220 - are you still on for this? If so please let me know. Thanks
Thanks to all of you who have offered to support a Shareholders Action Group to get us a better deal from this latest deal. We need support from holders of a minimum of 70.5 million shares.
Can those who are willing and able to support this please let me know either via direct message to my Twitter account or via a message on Telegram? Please also confirm the amount of your shareholding so that we can see how close we are together to the minimum required holding.
Thanks and Kind Regards
Thanks for those suggestions Mr Robo. There are 705 million shares in issue so we would need holders of 70.5 million to get the resolutions heard at a GM of the company. The strategy of a group of shareholders writing to the company has been tried previously but with limited success but maybe this time with a larger number of voices it could make a difference. Let’s see what people want to do with this. Thanks.
Thanks Ella. I have seen this before and found it to be not at all helpful. They group together some of the nominee companies which is pretty meaningless as they are a summary of many small holdings who do not act in unison. MMs holding is slightly below the cut off they have used in that list so I guess that’s why it’s not shown. Thanks.
Hi Ella. Not sure about that link - it doesn’t open up when I click. However, the figures I quoted are directly from the latest financial statements which are dated April 2023. I assume these are still correct and that MM still has these holdings but who knows with KAV?
MH it’s not about trying to block the proposed placement. It may well be the case that none of the resolutions get enough votes to be adopted. However, it seems that this may be the only way to get the board’s attention and let them know that their actions are not going unnoticed. Once the placement is completed it will be fate accomplished for the investor who will have complete control over KAV and BT will no longer be accountable to the minority investors. As far as contacting BT directly I have done so on many occasions and he has always been prompt and polite in his replies. However, in my experience direct communication with BT and the board has not actually achieved any satisfactory outcome for investors and has not changed their behaviour. Hence the dire results for investors some of whom have already seen an 85% loss and now face 100% dilution.
Thanks for that JP. BT is paranoid about the KAV shareholders and knows in detail all the shareholders. Where the holdings are held in Nominee companies he writes to them on a monthly basis and gets detailed reports of who has bought / sold. They therefore know precisely who all the holders are although I doubt they will share that level of information with yourself.
The significant shareholders are listed in the accounts as:
Purebond Limited 12.05%
Power Metal Resources 9.85%
Arigo Capital 3.94%
Charles Michael Moles 3.13%
Other Directors including BT 3.80%
Total 32.77%
Therefore the strategic investors and directors between them control way less than 50% of the votes. This means that enough investors vote against the company it may be possible to get some changes made.
Enough of the bulletin board whinging and time for shareholders to take some concrete steps in protecting their interests. Who’s up for it?
Shareholders holding a minimum combined holding of 10% of the company can ask for a GM to discuss matters of concern. Given that KAV are already planning on holding a GM it is likely that such resolutions would be dealt with together in the one meeting so should not require much additional effort from the board.
Potential issues / resolutions could include:
1. A motion of no confidence in the CEO Mr. Matthew Ben Turney
2. A motion of no confidence in the Chairman Mr. David Smith
3. A request for an explanation of the circumstances behind £0.5million of the Share Placement Proceeds from November still not being received to date.
4 A request to immediately cancel any shares issued that have not been paid for by the acquirer.
5 An explanation of why 5 months after the last fund raising little to no progress has been made on drilling any target.
6 An explanation of what the companies plans are for Zimbabwe acquisitions and how this will benefit shareholders
7 An explanation of why £100k bonus was paid to the CEO given the fact that shareholders have lost up to 85% of their investment over the same period.
Such resolutions may not necessarily get passed at the GM but they will at least put the board on notice that they are being watched and that shareholders are very unhappy with the way things have turned out. It will also enable a route for direct legal action by investors should they wish to pursue this against the company in the event that they rip off the minority shareholders.
Having been a long term and faithful investor in KAV the above is said with reluctance but it may be the only path available to shareholders now given that the company has paid little attention to date to what shareholders have been telling them.
People who honestly believe this is going to 25 bag from here and that BT and the new investor will not find a way to get their hands on almost the entire pie are living in cloud cuckoo land. Very misleading.
That’s a completely different matter Metalhead. The board calling a GM where the passing of the resolutions is just a formality as opposed to shareholders requesting a meeting to discuss issues that they have tabled. This is how these things work. Doing nothing and relying on the board to look after your interests is unlikely to bear fruit. Small shareholders are like lambs to the slaughter when you are dealing with the likes of the KAV board / BT.
The only hope for investors is to oppose this deal and insist the board make it more attractive to small shareholders and protect their interests. This is unlikely to happen given the fractious nature of shareholders. However, it takes only 10% of investors to call for a General Meeting of the company to consider these matters. There is still a chance of this happening before this deal closes. However, once the new investor has controlling interest it will be pretty much impossible to oppose them.
Legal the issue is not that they may sell their shares in the event of a rise in the SP. That is very unlikely to happen. They are after the big bucks which come with a successful discovery. The problem for us small investors is that once they gain control they will call all the shots and can pretty much do what they want. Small shareholders will be left to feed off the crumbs that the controlling party decides to throw. The investor and the board members will be the big winners. I’m afraid the dreams of multi bag returns on this investment are fast diminishing.
£6m at 1p a share would be more than 50% of the market cap meaning investors are being diluted by 50% at a time when the share price is at rock bottom. Another betrayal of long term investors by BT and the KAV board.
I have to say that I am not at all surprised and saw this coming when they did the November fund raise. My guess is that the investor is again the Kasangra family who already 12% of the company via their investment vehicle Purebond.
The only positive is that it establishes a base price for the company at 1p and ensures it’s survival for now. BT and hang will no doubt be laughing all the way to the bank.
That is an excellent summary JP. Completely agree with you on all that. Despite the shambles of a management team the underlying assets and prospects remain very attractive especially given the tiny valuation. It would take only one decent discovery to completely change things.
As shocking as BTs bonus is to the overwhelmingly majority of shareholders an equally shocking and appalling state of affairs is the missing share placement proceeds of £0.5 million. How is it even possible for a UK listed Plc to make a share issue and fail to collect the proceeds up front? What does this say about the professionalism (or lack of) of KAV and its broker First Equity?
BT is like Mickey Mouse on steroids. Completely unreliable and untrustworthy. If they can pay BT such a massive bonus is a year of disasters then what assurance is there that in the event of a successful discovery the board will not cream off the majority of the rewards for themselves and leave shareholders high and dry? A very worrying state of affairs and yet more massive red flags for this company and this CEO.