CEO Peter Berdusco is throwing all the escape plans possible at his Guyana Goldstrike (GYA.V), as the company continues to capsize after three years of stock price drops and mismanagement.
Berdusco has announced he’ll roll back the stock on a 5:1 basis, to attempt to move the stock closer to a price in which he might be able to raise money, but a defaulted loan payment, delayed financial filings, and a management cease trade order, combine to make it pretty unlikely many investors would find such an investment attractive.
GYA took out a $300k debenture recently, with a cannabis industry-like interest rate of 15%, payable quarterly, with a conversion price of $0.20, maturing in early 2022.
The debenture is presently in default, and the creditor has agreed to extend the deadline for completion of pending interest due and owing pursuant to the debenture and to accelerate the maturity date to Sept. 1, 2021.
The company had issued 1.5 million warrants to the lender at an exercise price of $0.30. To keep his head above water, Berdusco had to do everything but offer blowjibbers.
In consideration for the extension and acceleration, the company has agreed to reduce the conversion price of the debenture to [from 20 cents] 7.5 cents and the exercise price of the warrants [from 30 cents] to 10 cents.
Berdusco has previously been busted selling stock in companies he was running without properly filing insider trade documents, which makes the long term GYA bleed out and an absence of any insider trade docs filed in the last six months all the more reason to be cynical.
If I was a betting man, I’d figure as much as GYA’s lender is squeezing the company for better terms, and getting them, he or she will not see another cent out of Guyana Goldstrike. Any other resolution just doesn’t fit the CEO’s MO.
— Chris Parry
FULL DISCLOSURE: How’s life, Pete? Regards to your brother. Nexus Gold investors say hi.