Transaction Bonuses Highlight Strategic Growth and Silver's Strong Market Potential
Silver Crown Royalties Inc. (SCRI:CBOE) has announced its intention to grant transaction bonuses to certain officers and directors following the companys successful going-public transaction and subsequent listing on the Cboe Canada Inc. exchange. Read about what this move says regarding the company's present and future goals.
Silver Crown Royalties Inc. (SCRI:CBOE) has announced its intention to grant transaction bonuses to certain officers and directors following the company's successful going-public transaction and subsequent listing on the Cboe Canada Inc. exchange. The bonuses recommended by the company's compensation committee include 11,250 common shares at a deemed price per share equal to the market price, as well as cash bonuses totaling CA$185,000.
The issuance of these shares and cash bonuses are intended to recognize the significant contributions of the officers and directors involved in the successful execution of the company's public listing.
The issuance of these bonus shares is considered a "related party transaction" under Multilateral Instrument 61-101, which requires certain protections for minority shareholders in special transactions. However, Silver Crown is exempt from the valuation and minority shareholder approval requirements due to the fair market value of the bonus shares not exceeding 25% of the company's market capitalization. No new insiders will be created, nor will any change of control occur as a result of this transaction.
Silver's Growth Amid Technological Advances and Market Demand
According to a Kitco report on August 19, the demand for silver was set to increase significantly due to Samsung's development of a new solid-state battery technology. Retired investment professional Kevin Bambrough highlighted that "Samsung's new solid-state battery technology, incorporating a silver-carbon (Ag-C) composite layer for the anode, exemplifies this advancement."
He emphasized that "this alone presents a bullish trajectory for silver and doesn't even account for demand from the solar industry," indicating the significant impact this technology could have on silver demand.
Enrico Punsalang of Ride Apart remarked on the potential for solid-state batteries to become the standard in electric vehicles within the next two decades, stating in the Kitco piece, "At the end of the day, the advancement of solid-state batteries is a good thing for everyone . . . Who's to say that in the next 20 years, or maybe even less, SS batteries will be the standard for EVs?" This development was expected to further bolster the demand for silver, which is a key component in these advanced batteries.
Charlie Morris, founder of ByteTree, drew parallels between the current situation and the silver rally of 2010, which saw prices surge to US$50 due to demand for solar panels. He observed in the same article, "Yet the EV bull story is here and now, and if solid-state EV batteries can invigorate the crowd, silver is onto a winner." Morris also noted that "the silver price basically matches gold, but goes further, not just in bull markets, but whenever there's a good story," suggesting that silver had the potential to outperform gold, especially when driven by compelling market narratives.
Technical Analyst Clive Maund, writing on August 19, described silver as being on the verge of an "unprecedented bull market," set to commence once the metal broke above the key US$30 level.As SprottMoney reported on August 6, silver was poised to outshine gold in the next market rally, predicting that "Silver will crush Gold in terms of performance when the next rally takes hold." He also asserted that "the only way is up for Gold and Silver, and the latter will lead the way higher," emphasizing silver's strong growth potential in the near future.
Technical Analyst Clive Maund, writing on August 19, described silver as being on the verge of an "unprecedented bull market," set to commence once the metal broke above the key US$30 level. Maund emphasized that "Silver and all things silver are a terrific bargain here, with these sorts of prices not expected to last much longer and may never be seen again."
He further noted that "the reaction back into the pattern of the past couple of months is seen as presenting the perfect 'buy spot' for silver and all things silver ahead of a genuine breakout leading to a vigorous bull market." Maund believed that silver was "perfectly positioned for renewed advance," supported by strong technical factors and the broader market conditions.
Additionally, Gainesville Coins highlighted in an August 23 report how precious metals like silver tend to rise in value during stock market crashes as investors seek safe havens. They noted, "When stocks are crashing, the prices of precious metals tend to go up. Gold and silver offer safe harbor for fearful investors." The report further explained that during periods of economic instability and inflation, "Gold and silver, as stores of value, tend to appreciate" and that "sustained investor demand for gold and silver in response can keep prices elevated."
Silver Crown Catalysts
Streetwise Ownership Overview*
Silver Crown Royalties Inc. (SCRI:CBOE)
*Share Structureas of 8/15/2024Source: Silver Crown Royalties Inc.The decision to award transaction bonuses underscores Silver Crown Royalties Inc.'s commitment to rewarding its leadership team for its role in the company's growth and successful public listing. This move is a positive indicator of the company's confidence in its future performance and ongoing expansion. The bonuses are seen as a strategic investment in maintaining and motivating the key individuals who have been instrumental in driving the company's success.
Silver Crown's focus on minimizing the economic impact of mining projects while maximizing returns for shareholders is reflected in its continued efforts to secure revenue from silver-producing projects. The company's decision to reward its leadership could potentially enhance shareholder confidence, as it aligns with the goal of building a robust foundation for future growth and profitability.
These developments are expected to provide further momentum for Silver Crown as it continues to target additional operational silver-producing projects, thereby strengthening its position in the market and driving long-term value for its shareholders.
Ownership and Share Structure
According to the company 21% of the company is with management, insiders, and friends and family.
16% is with institutional investors.
6% is with corporate investors, and the rest is with retail.
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Important Disclosures:
Silver Crown Royalties Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver Crown Royalties Inc.James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.