The Financial Post reports in its Wednesday, Jan. 28, edition that Marret Resource shareholders are excited by a recent filing by institutional investors Frigate Ventures LP and M5V Advisors.
The Post's Barry Critchley writes that the funds they manage now have a combined interest of more than 10 per cent. At year-end they had a 12.07-per-cent interest.
This filing comes a month after Marret announced the suspension of its monthly dividend. Marret termed the suspension "technical in nature" intending to reinstate the payout "as soon as it's able to pay a dividend under applicable corporate law."
The dividend suspension caused the share price to fall. Mr. Critchley notes that a falling share price has been characteristic of Marret since it emerged from an already public company, Primary Corp. The two institutional investors are presumably upset that Marret continues to put a value on its largest investment, Cline Mining. At the end of 2014, Cline had a 10.16-per-cent weight.
What puzzles holders is that Cline has been delisted from the TSX for about 18 months, and is now in the process of going through a complicated restructuring. An unnamed observer says, "The entire NAV of Cline should be written off."
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