via Pepperdine.edu - Equity Offerings By Firms That Emerged From Bankruptcy

Golden Band may have entered into a pro-forma insolvency(meaning conforming legally, but the company was not necessarily insolvent as the creditors were paid in full) in order to engage in a post-insolvency IPO. You would think that the company would seek a revocation order, but the fact if the matter is that all of the legal conditions that satisfy a post-insolvency IPO are in order.

You would also think that post-insolvency IPO carries more risk, but the outcome of post-insolvency IPOs are better than traditional IPOs.

"Since there is less hype and underpricing associated with these offerings, there is less potential for an aftermarket correction. We also find that the aftermarket risk of public offerings by firms emerging from bankruptcy is lower than that of traditional IPOs."

For all intensive purposes the company is a private entity if the shares were retracted, cancelled, and the extinguishment were carried out. The shares(or the right of ownership of those shares in the company) are basically held in escrow as GBRIF while the next step is undertaken.

Very highly likely the company is going to reverse split the existing shares on a 30:1 basis, and those shares become series 'A' preferred's. If the valuation taken from PROCON's change-in-control put is the value of the preferred, then this is the value of each share after the reverse split.

By way of example, for instance, if the shares are worth $100 a piece after the reverse split and IPO, then a 7% payout means $7 a share. Technically that means if the company were to pay a dividend without the restructuring, the dividend would be 7/30, 23.33333 cents a share. This also would imply a $3 per share IPO on say ~30m new common shares.

This is well within the means of the company to accomplish, especially if a certain number of shares were retracted and cancelled. The extiguishment that fits with the context as we discussed is the conversion of common shares without a conversion right into preferred's.(link library)

This example was the only available example using a search engine of post-bankruptcy equity offering. A post bankruptcy equity offering is perhaps the only course of action that can be contemplated in the given context and may not actually require a revocation order.

http://digitalcommons.pepperdine.edu/cgi/viewcontent.cgi?article=1025&context=jef

via FinancialPost.com - A 9m. For 1 Consolidation

Barry Critchley discusses a shareholder squeeze-out of a rare earths junior.

http://business.financialpost.com/news/fp-street/getting-ready-for-the-mother-of-all-consolidations-frontiers-9-million-to-one-proposal

-F6