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Wednesday, July 14, 2010

Augen Gold (CDNX:GLD.V) Postpones Shareholders Meeting on Takeover Fears

The shareholders meeting of Augen Gold (CDNX:GLD.V) has been postponed from July 13, and has been rescheduled for July 23. The cut-off date for proxy votig was also changed to July 21, according to the company.

Irregularities with a number of proxies was the reasoning behind the change, as a large block of shareholders, representing 39 percent of issued and outstanding shares, submitted proxies, naming a director leaving the company as proxy. Others submitted blank proxies as well, generating unsurety as to what they wanted.

The company did say this, “The directors of the company are concerned that the dissident shareholders seek exclusive control of Augen Gold despite representing just 39% of the shares outstanding.”

Evidently the group of shareholders involved had said they might hold their own meeting in an undisclosed location with only them present.

It's hard to believe the company has no idea what the shareholders want other than an attempt to take over the company. Something must have led up to that, and that's what the real story probably is, unless it's just a power grab.

With owning 39 percent of the shares though, it would have made more sense for them to acquire enough shares for control of the company before making their move. Doing it this way is strange indeed, which would seem to be an attempt to draw attention, but so far no message or release has been forthcoming.

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