Hairy you may wish to do a bit of research - these guys have taken out much more than they have put in. These 'good guys' owned JDC which had a right to acquire 50% in 2 projects and 75% in two others. CKA (then named Altura) acquired JDC for 210m shares (at the time valued at 30c each for $63m). CKA also assumed US$39m of JDC's Contingent Liabilities relating to these projects comprising US$13.3m for the acquisition of the projects and US$25.7m in milestone payments. You can refer to the Annual Report where this remains outstanding and payable when they get funding to start operations. The Fab 4 of Lynch, Hanna, Martino and Middleton put in a combined $125,000 for a 59.5% stake JDC and swapped it for 125m CKA shares and 12.5m options. So what do CKA shares owe them - $0.001c, yes 1/10th of 1 cent. In addition, between 2011 and 2016, as directors/executives/Consultants, Lynch was paid $1.661m, Hanna $1.657m and Martino $0.596m.
Hanna has in fact increased his shareholding by about 800,000 to 25.8m, Lynch more than halved his from 55m to 25.9m (prior to his unfortunate death in Jan 2017) while Martino sold around 6m during 2014 reducing his stake from around 37m to 31m shares. So, how much have they risked?
CKA Price at posting:
4.5¢ Sentiment: None Disclosure: Not Held
