Newport sued after old royalty gives stock big boost
2014-07-04 15:20 ET - Street Wire
Also Street Wire (C-RVA) Reva Resources Corp
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by Mike Caswell
A shareholder of Newport Exploration Ltd. has filed a lawsuit against the company in the Supreme Court of British Columbia, claiming that Newport waited far too long to announce substantial revenue it started to receive from an old royalty. The suit complains that management's lack of disclosure kept the company's price artificially depressed through portions of 2013 and 2014. Meanwhile the company issued millions of undervalued shares, some at prices as low as five cents, according to the suit.
The allegations are contained in a notice of claim filed at the Vancouver courthouse on June 30, 2014, by Daniel Kosch, a shareholder who is hoping to be the lead plaintiff in a class action lawsuit against Newport. In addition to Newport, the suit names as defendants the company's president, Ian Rozier, and three of the company's directors: Barbara Dunfield, David Cohen and David Cowan. Also a defendant is Reva Resources Corp., a related company that received shares in a property deal.
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Sounds pretty serious and makes a lot of sense. No reason to finance with that kind of cash flow! Someone trying to short change the shareholders?
Posted by Mmm at 2014-07-07 03:39
Sounds positive that it was a scheme to make a large profit for management and totally screw all shareholders. All one has to do is review the history and it proves that.
Posted by John at 2014-07-07 09:45
If con artists and swindlers are allowed to do such things why do we have a securities commission that fails to take action and protect shareholders. The old Vancover Exchange was known for it and it seems the new CDNX is just as bad.
Posted by John at 2014-07-07 11:02
I believe some month or two there was a big writeup on 321 gold editorials on a possible wrongdoing by this company.
Posted by Jjjjj at 2014-07-07 12:05
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