CADAN Resources Corp. (CXD”) is back pouring gold. However, over the past few years Cadan has provided its shareholders with their share of misery.
The BCSC had the company amend and restate its financial statements for the year of 2013. Then Cadan failed to file its 2014 financials on time and found itself suspended by the BCSC. On a long term rollback/split adjusted chart it appears Cadan long-term shareholders have had an oxygen-sucking ride down from $50 a share to its low of $0.03 per share. Throughout 2015 Cadan went on a tear carrying out financings, shares-for-debt settlements and so on. In doing so, management succeeded in diluting the heck out of their existing shareholder base by issuing tens of millions of shares and warrants of dilution. The issued and outstanding share total exploded from around 19.8 million to the current 145.5 million in one year. That’s the equivalent to a 7.34:1 rollback folks. Oh, and speaking of rollbacks Cadan is no stranger to them. In recent years the company has rolled it shareholders back 5:1 and then again in 2014 another 8:1. Let us put this all into perspective for our members in case any of them have been long term shareholders in Cadan Resources. If you had purchased 1,000 common shares at January 1, 2009 you would have had 200 shares remaining after the first rollback. After the second rollback of 8:1 in 2014 your 200 shares would have been reduced to only 25 shares remaining. Now if we figure in the 7.34:1 of dilution during 2015 your remaining 25 shares are now equivalent to about 3.4 shares. Your position in the company and ownership in assets has been reduced by the same as a 293.6 rollback (5 x 8 x 7.34 = 293.6). At the present trading price averaging around $0.04-$0.045 your 25 hard shares would be worth about a buck, and the 3.4 share equivalent post 2015 dilution worth about 14 cents. Small gold producer or not, for Cadan is simply dislikeable.