Peregrine Diamonds - Reorganization

Here is the official release -- Peregrine Reorg

Several key points here.

1 - Tom is the front man for Peregrine Diamonds. Pretty obvious choice here as he has been the clear representative for Peregrine in most, if not all Community related events. I don't know how many times Eric has been up to Nunavut...but I can bet Tom has many multiples on Eric.

2 - Isolating Chidliak from all other assets. Could be several reasons for this.
   a - Could spin out non chidliak assets into a seperate shared structure and have that structure share some of overhead costs with Peregrine Diamonds.
   b - Could sell the spinco altogether to another company and raise more $$ s to spend on Chidliak
   c - spinco could start consolidating similar assets (previous partners) for dirt cheap. Create something more cohesive and appetizing.

3 - Eric has withdrawn his CEO title. Is executive chairman for both entities and also the Chair for the Board of Directors. Focusing on the strategic planning, but more importantly funding initiatives. He may even take a pay cut for the good of the company. He does own a lot of shares, so is already heavily vested into making this thing work. Another thing is that he is part of the trifecta (Eric/Robert/Ned). If they are going to do anything significant together (whatever that is), by withdrawing from CEO, he may be in a better position to not incur a conflict of interest at some point in the future. Technically the Chairman (and he is now 3 of those) does not have a regular vote..but is only used to vote if there is a split.

4 - I don't think they would just do this arbitrarily without having a plan for the future. That will only be known as the future unfolds.

5 - Spincos regularly get created when a company gets taken over and the management/board of directors still want a job at the end of the deal. They go with the spinco plus some cash and the original entity goes to the company taking it over. In this case, that would be imply the carriage before the horse...but they can also be putting this on a silver platter for all to look at.