via UOttawa.ca - Going Private Transactions And Minority Squeeze Outs

In researching the company and its actions in the markets and the courts, I have come full circle on the subject of the going orivate transaction and minority squeeze out.

The company ultimately has need of a majority of the minority which they have, but also the approval of retail shareholders who approve of the restructuring or reorganization of the company, that are in amongst the top 50 shareholders.

With the retraction and cancellation of 50% + and the divestment 5% of the shares in total, the retailer, with no other information than they are able to obtain from public sources, such as satellite photos, minimal technical information provided by the company, and price advantage could have accumulated sufficient to ride out the predations. You might expect to see see price declines due to a closely held corporation, consolidation, or worse, a minirity shareholder squeeze out. The company need merely point to the surviving retail shareholder as an example of their compliance with legal requirements having been met should the legality of their actions be questioned.

The going private transaction merely requires an amalgamtion of two numbered companies in Saskatchewan under the circumstances, and we have that with File No. 643, the CCAA filing under the Saskatchewan Court Of The Queen's Bench.(I believe this to be where the rubber hits the road, and the cost of capital will meet with retained earnings)

More than highly likely the company Golden Band Resources will not emerge from bankruptcy, but will be enjoined in a going private transaction and minority shareholder squeeze out. Half the shares will have been retracted and cancelled, doubling the holdings of the existing majority if the minority(who are now in the absolute majority.) But that means the surviving retail shareholders obtain the same benefits.

But the company requires that the surviving shareholders are not dissenting and approve, and therefore become part of the newly created majority.(presumably the top 50 shareholders holding 600k - 1m. shares or more each.)

A detailed analysis of the laws is found here. The company is reorganizing under the terms if a quasi-reorganization that appears to be a single bankruptcy and winding up, but is actually two seperate bankruptcies, following the conclusion of an in-substantive defeasance, a change-in-control put, and a pending paid-up capital reorganization, with a conversion of common shares into preferred. The company will be a private company with a handful of preferred shareholders.

https://commonlaw.uottawa.ca/ottawa-law-review/sites/commonlaw.uottawa.ca.ottawa-law-review/files/20_13ottawalrev3561981.pdf

-F6