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8/21/17

Firestone Ventures (FV.v): IKN explains

Want to know why Firestone (FV.v) has gone vertical? The IKN Weekly explained it to its subscribers two weekends ago in IKN430, dated August 13th:


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Firestone Resources (FV.v): A significant corporate development
Some people worship at the altar of Keith Barron, I think he’s a smart bizguy but the way he tilts the playing field massively in his favour when setting up a company leaves me feeling nauseous. He’s done it recently with that silly “El Dorado Search” company Aurania (ARU.v) in Ecuador (and hey, he found backers, who am I to judge?) and he’s now doing it again with the other company he controls tightly, Firestone (FV.v). This Friday NR (14) has all the details, here’s a couple of segments

As part of the Debt Settlement, the Company has agreed to issue to Bambazonke Holdings Ltd., (the "Lender"), a company controlled by Dr. Keith Barron, Chairman and director of Firestone, a total of 9,096,800 Shares, making the beneficial holding of Dr. Barron approximately 19.85% on a fully diluted basis of 50,872,791 Shares that are expected to be issued and outstanding following the Debt Settlement. Prior to the Debt Settlement, Dr. Barron owned directly or indirectly no Shares of Firestone. In July 2016, Dr. Barron was granted 1,000,000 five-year stock options to purchase 1,000,000 common shares at $0.05 per Share.
The Company proposes to complete a subsequent share for debt transaction whereby an additional $370,000 of indebtedness owed to the Lender and Dr. Barron will be settled through the issuance of Shares, also at the deemed price of $0.05 per Share (the "Proposed Debt Settlement"). It is expected that the issuance of Shares to the Lender and to Dr. Barron pursuant to the Proposed Debt Settlement will increase Dr. Barron's beneficial holdings in the Company to over 20% of the then issued and outstanding Shares on a fully diluted basis, thus making him a new Control Person, as defined in the policies of the TSX Venture Exchange. Accordingly, the issuance of shares for debt that results in the creation of a Control Person requires the approval by the "disinterested vote" of the shareholders which the Company will seek at the upcoming meeting of shareholders. The Proposed Debt Settlement is also subject to the approval of the TSX Venture Exchange.

It’s classic TSXV bullshit: The head man gets a salary, the tinyco has no money and can’t pay it, the debt is accrued month by month on the liabilities, the head man takes it in a debt-for-shares deal (when anyone truly caring for shareholders would have waived their salary years ago), then the company does a rollback, suddenly gets a new project, a new launch and a pump from The Usual Suspects. It turns my stomach frankly and people like Barron are not the solution, they’re the problem. But the set-up is obvious so if you’re looking for a pennycrapper dice roll for 2018, FV.v may interest you.


Disclosure: No position in FV.v and not planning to take one either. IKN is part of the solution, not part of the problem.