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SW Saskatchewan | While in receivership (bankruptcy), the receiver or trustee guarantees payment. It is what happens once the company is released from bankruptcy! Other than that I have no idea about details.
The wheat farm deal is a big question. I have a feeling that it is more designed to farm investors than land so actual solid details are very few.
They are supposed to be based on the principle of "renting" or "joint operating" on Indian Reserves. Some of the Reserves have substantial cultivated acres, some have purchased cultivated lands lately from $ paid as compensation for some shady deals back in homestead days. Indians generally prefer to lease out the lands for cattle grazing, the younger natives on reserves want to participate in the cowboy culture, so I have some very serious questions about how this will work.
Of course in the promotional material, they pitch to potential investors all the govt money they will receive for training the Indians in farming methods- I think this is a lot of hocus-pocus because this money, if it exists, would go to the tribal council.
One bit of warning, Canadian promoters don't have any qualms about playing investors for suckers. The same principle of an honest market that is the basis of the NYSE doesn't seem to have crossed the border into Canada.
Yes we have laws, but the punishment for white collar crime in Canada is laughable compared to what would happen in the states- even assuming that a Canadian court would find that crime had been committed. Do you ever hear of all the phone scams out of Canada- happens because we have no equivalent to the US wire fraud federal statutes- the guilty parties might have their phones disconnected in Canada!
But a few have found out that American courts aren't so lenient- Lord Black of Cross Harbour is now your guest in Florida, Peter Pocklington is afoul of the legal system in California, the players in Livent were luckily slapped on the wrists for their scam -heavens if they had been found not guilty and sent to trial in the US, they might have got to see the inside of a jail!
So be careful about investing in a Canadian company unless its principles and head office are resident in the US, at the very least make sure they are listed on a US exchange so that some standards of accounting are applied.
In finance, it is the wild west up here! And it is not because we have de-regulated, it is just that our laws have never got around to considering that stealing with a pen is just as real as stealing with a gun. | |
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Cutting a wide swath - follow up
