- Q: Are we considering rolling the stock back?
The answer to that has been consistent...we have no plans for a rollback at this time.
Fifty years of observing the business suggests that a rollback with no good news only results in the stock price decreasing further ...as people sell off their ‘remnants’ of stock!!
If, as, and when we have a success, such as a discovery hole/s or a joint venture, merger, or outright sale of the Red Hill property (while retaining the 2% royalty in NuLegacy), we will visit the pros and cons of undertaking a rollback.
Rollbacks or ‘reverse splits,‘ as they are sometimes ‘euphemistically’ called…are what promoters do so they can reload at very, very cheap prices for the next ‘enterprise’. There is no ‘next enterprise’ contemplated…we are committed to making a success of NuLegacy…as presented above.
Disclaimer: To date, the Company has not entered into any agreement, commitment, understanding, or arrangement with a mid-tier gold producer or otherwise for the joint venture, further funding, or outright purchase of the Red Hill property and there are no assurances that any such transaction will be entered into by NuLegacy in the future.
- Q: Why have two of the senior officers of NuLegacy been willing to sell their shares ‘cheap’ and buy units that are ‘dearer’?
First principles - to show leadership in funding their company’s exploration program, by:
- Selling to crystalize the tax losses on their positions…i.e. - in the case of Mr. Matter whose average cost was ~ 10 cents – on 10 million shares – thus an approximate one million dollars tax loss.
- Thus, satisfying those shareholders who want to participate further in the company’s future, but do not want the 4-month hold of the new private placement shares.
- Meanwhile Albert will be re-investing the money recovered by way of the sale (~$170,000) plus $80,000 from personal funds back into the company by way of the current private placement to buy 10-million-units subscription at a price of 2.5 cents per unit for a total 10% of the current issue…thus getting the money into the company’s coffers, and obtaining both shares and warrants...albeit with a 4 month-hold.
- Similarly for Mr. Davidson’s ‘sales and reinvestment’.
- U.S. Investors FAQ
TSX & TSXV FAQ for U.S. retail investors: Open PDF
Please submit your questions to info@nuggold.com!