Is Monette Farms like Bernie Madoff?

[WiltonRanch]

Seen Monette made a deal with an another big landowner that if he got the 100 million sale price of some BC land down 20 million they would give him 10 million.Then the guy had to go to court to get his 10 million from Monette.Makes me wonder if Monette offered the Sask party members a similar deal to go ahead with the irrigation project.

Remember Monette having dinner with Lingenfelter before the last provincial election. Ponying up with old ndp hacks just in case. Get your head out of your ass you old troll.

[newguy]

Seen Monette made a deal with an another big landowner that if he got the 100 million sale price of some BC land down 20 million they would give him 10 million.Then the guy had to go to court to get his 10 million from Monette.Makes me wonder if Monette offered the Sask party members a similar deal to go ahead with the irrigation project.

[dad-bod]

If a guy sells a special class of shares of a corp to another entity, they are no longer sole owner of that corp.

Early in the article linked to in post #169, it mentions the ranch was sold to Monette Farms Ltd., Darrel Monette, and the numbered company 102134752 Saskatchewan Ltd.

This is a clue that maybe these huge expansions have been set up as some kind of partnership with Monette Farms as the farming / operating company, solely owned by Darrel Monette as he claims, and some - or most - of the land owned by investors through numbered companies.

Google says they farm over 350,000 acres. The article mentions Monette has access to 395 million in credit (though doesn't say what that credit specifically is for). That would be about $1100/ac for financing whatever land is owned by Monette plus equipment, buildings, overhead, inputs, and their other business ventures (produce, seed co). That doesn't seem out of line to me.

A guy could pull land title registrations and corporate registrations to get a better idea.

[wrongway]

I was thinking more along the line of selling a class of shares representing certain assets. That way you could sell those shares(assets) and still say you 100% of your company.
Any corporate lawyers or corporate accountants in the crowd?

you can do it... the only problem is who the heck is going to buy those shares? If its going to be non-arms length then there are easier and cheaper ways to transfer assets.

[farmaholic]

I guess ultimately the article is about Dutcyvich being paid for his assessment work of Blue Goose, which was ultimately purchased by Monette Farms AND the numbered company. It was the twists and turns that made it interesting. I guess the purchaser needed to come up with 63M and now another 12M?

Oh what a tangled web we weave.

[Templeboy]

the last lines of the article...

"David Kemp, general counsel for Monette Farms, said the deal to sell company shares to LBJ ultimately fell through within months of signing the term sheet. Kemp said the company remains 100 per cent owned by Darrel Monette"

There are lots of contracts and purchases that fold and fall through. Generally, it seems there is misrepresentation of many things and due diligence is something you pay for!

[farmaholic]

I was thinking more along the line of selling a class of shares representing certain assets. That way you could sell those shares(assets) and still say you 100% of your company.
Any corporate lawyers or corporate accountants in the crowd?

[GDR]

Just because you sell shares "of" your Corporation doesn't necessarily mean you have the Purchasers as shareholders "in" your Corporation, does it?

That's exactly what that means but doesn't necessarily mean they have voting shares.(control) Can be different classes of shares and they can participate in profits/ dividends in different ways. Not sure that is the best financing solution, kinda opens both sides up to confrontation based on goals, expectations and exit strategies. Alternatives would be debentures or something similar but then there would be some expectations of repayments and interest where shares would just be a cash infusion without requiring cash flow to float.

[farmaholic]

What's your thoughts about the amount of capital that came into Western Canada with the foreign investment into farmland(or even west coast housing)? Even if it was through the back door then under the table.

Some(or all?) of that capital would have stayed here when people sold their property. At multiple times higher than they could have 15 years ago.

[farmaholic]

Statement out today from Daryl Monette says he is still the Sole owner of the Monette Group/Farms .
Other than the $12 million judgement for the sale commission the rest of that article seemed to be a bunch of unrelated, outdated and mixed up #'s.

Just because you sell shares "of" your Corporation doesn't necessarily mean you have the Purchasers as shareholders "in" your Corporation, does it?

....so in essence his statement may still be correct. Do a Corporate Registry search.

Where is Richard5? He seemed to have a good handle on these sorts of things.