Topic: Growth Stocks

The Stock Pickers Digest Hotline – Thursday, April 9, 2009

Article Excerpt

IVERNIA INC., $0.15, symbol IVW on Toronto, could move down now that Griffin Mining (symbol GFM on London) has withdrawn its hostile takeover bid. The cash offer was worth $27 million (Canadian), or $0.15 per Ivernia share. Ivernia develops and explores for minerals. Its main asset is its Magellan lead mine in western Australia, which is currently closed. On April 1, 2009, Ivernia amended the terms of $20 million U.S. worth of convertible notes held by Sentient Global Resources Fund II. It also issued new notes to Sentient, which raised $10 million U.S. in cash. According to Griffin, these moves effectively made Sentient Ivernia’s largest shareholder and gave the fund a controlling interest. Ivernia cut the conversion price from $1.08 U.S. per share to $0.11 U.S. per share. Moreover, the term was extended by four years, to 2013, and Ivernia’s annual interest payment was raised to 8% from 6%. In a significant blow to Griffin’s takeover offer, the convertible notes are due and payable…