Gold Penny Stock News
Company Confirms It Is Considering Various Offers Which Could Lead to a Takeover of the Company
Jul 29, 2008 1:19:00 PM
NEW YORK, NY -- (MARKET WIRE) -- 07/29/08 -- Hunt Gold Corporation (PINKSHEETS: HGLC) confirms that it has received a number of serious offers for the Company, which, if successful, could lead to a buyout of the Company.
The Company had announced earlier that certain Investment Groups had obtained voting rights over 51% of the Company's outstanding stock. They did not however acquire the actual stock, just the voting rights.
These Investment Groups believed an immediate solution was to resolve the huge difference in the trading price of the stock and the NAV per share was to dispose of the Company's interests in "American Molygold" and to utilize an amount of US$10,000,000 of these proceeds to effect a stock repurchase.
These Investment Groups failed to factor into account that Fortress Financial Group, Inc. held an amount of circa 483 million shares which are now eligible to have their restrictive legend removed and become "free trading," effectively doubling the "free float."
The CEO of Fortress Financial Group, Inc. has elected to play "hard ball" with these Investments Groups and refused to accept a price of less than an amount of 2 cents (US$0.02) per share for their shares of this Company's stock. This effectively kills the planned stock buyback in the amount of US$10 million, and the amount previously planned by these Investment Groups will not now be sufficient with Fortress Financial Group, Inc. "sitting on the sidelines" with a "fairly militant attitude." Fortress Financial Group, Inc. holds an additional amount of 1,363,588,873 restricted shares of this Company's stock.
To compound matters further, the CEO of Fortress Financial Group, Inc. is contemplating further purchases of this Company's stock, at what he views as "bargain basement prices," in the market; thereby increasing his Company's "free trading" stockholding in this Company. He has made it extremely clear that he will refuse to sell these shares at price of less than 2 cents (US$0.02) per share.
The CEO of Fortress Financial Group, Alan Santini, currently serves as Company Secretary to this Company. He has tendered his resignation as Company Secretary with immediate effect, citing conflicts of interest.
There is little doubt that Fortress Financial Group, Inc. has decided to put this "stock into play" in order to obtain the best possible price for their stockholdings and for their stockholders; many of whom received shares in this Company as Stock Dividends from Fortress Financial Group, Inc. Their CEO, Alan Santini, has made it clear that he wants results and fast, and has little to no interest in these Investment Groups' plans for the Company and wants to see immediate and very tangible benefits for his own Company and its stockholders.
The Board of Directors, after seeking legal Counsel, are now of the opinion that unless these Investment Groups immediately purchase these shares of the Company's stock from Fortress Financial Group, Inc., and in cash at the price demanded by the CEO of Fortress Financial Group, Inc., they will no longer continue to enjoy 51% voting power and control of this Company's Stock.
The Board is therefore now duty bound to enter into formal discussions with the various bidders for the Company.