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Continental Resources Group, Inc. Message Board

  • financesajeed financesajeed Feb 22, 2013 10:46 AM Flag

    Continental’s (CRGC) Record Dates for Dissolution and Liquidation

    At last, Pershing Gold Corporation (PGLC) and Continental Resources Corporation (CRGC) jointly announced Continental’s record date for dissolution and liquidation. Execution of the arbitrage strategy was likely for both Pershing Gold Corporation and Continental Resources Corporation, though I thought that it was nothing but a rumor before the companies’ formal application to SEC. Now I rethink about the future of Pershing Gold Corporation and the share holders of Continental Resources Corporation. This arbitrage strategy was not as obvious as CRGC was 80% worth of PGLC. The process was started on July 21, 2011 when GRGC had entered into an agreement to sell CRGC’s assets to PGLC as part of a plan for liquidation of CRGC. Subsequently, on July 22, 2011, both CRGC and PGLC completed the assets purchase agreement to sell entirety of CRGC’s assets and liabilities in exchange of PGLC common on stock. While entering into the agreement, the Board of PGLC agreed to issue eights share of the company (PGLC) to the common shareholders of CRGC in against ten common stock of CRGC. This share issue agreement was based on “CRGC is worth 80% PGLC" rumor. As a result, PGLC delivered total 76,095,214 shares to the shareholders of CRGC, which are to be distributed at liquidation of CRGC. Now the shareholders of CRGC hold around 30% share of PGLC collectively, which has created a minority interest in PGLC. As per the latest information published on February 21, 2013, which I introduced at the beginning of this write-up, Pershing Gold Corporation (PGLC) and Continental Resources Corporation (CRGC) jointly announced Continental’s record date for dissolution and liquidation. The record date is March 01, 2013 and liquidation will occur shortly. The above will enforce to complete share transfer and therefore, Continental will discontinue reporting with SEC.
    Although the above dissolution and liquidation will end the mission of CRGC, investors foresee a synergic effect of this liquidation which may advance operating result of PGLC.