Q: I looked in my Brokerage account today and noticed that my former Gear Energy (GXE) shares had been converted into Lotus Exploration (LTC) shares and cash. It looks like 62% of my Gear holding was converted to Lotus shares and 38% was received in cash (at a very low valuation).
Since the transaction Lotus has lost 29% in just 2 weeks.
I don't know how such a sleazy deal got past the TSX regulators? This reminds me of the bad old days when the TSX head honchos enabled frauds such as Bre-ex, Sino-Forest and so on or the even worse Vancouver stock exchange days.
In total I am down 53% on my original Gear purchase in Jan'23.
I have 2 questions;
1) does LTC pay a dividend?
2) is there any valaue at all in LTC or is this whole thing a fraud?
Regards,
Ticked off Dave
Since the transaction Lotus has lost 29% in just 2 weeks.
I don't know how such a sleazy deal got past the TSX regulators? This reminds me of the bad old days when the TSX head honchos enabled frauds such as Bre-ex, Sino-Forest and so on or the even worse Vancouver stock exchange days.
In total I am down 53% on my original Gear purchase in Jan'23.
I have 2 questions;
1) does LTC pay a dividend?
2) is there any valaue at all in LTC or is this whole thing a fraud?
Regards,
Ticked off Dave
5i Research Answer:
Certainly it was not a great deal but shareholders did vote on it and approve it. LTC does not pay a dividend and we would not expect one. We would not consider it a fraud, but it is a very small, much higher risk company. We do not think it needs to be owned.