Silver Dollar comments on recent promotional activity Silver Dollar comments on recent promotional activity
2021-01-07 16:11 ET - News Release
Mr. Michael Romanik reports
SILVER DOLLAR RESOURCES INC. RESPONDS TO OTC MARKETS REQUEST ON RECENT PROMOTIONAL ACTIVITY
Silver Dollar Resources Inc. has been requested by OTC Markets Group Inc. to issue this statement about promotional activity concerning its common stock.
On Tuesday, Jan. 5, 2021, OTC Markets informed the company that it became aware of certain promotional activities concerning the company and its common stock traded on the OTCQB Marketplace, including the distribution of two promotional newsletter e-mails published by CrushTheStreet and Wealth Research Group discussing the emerging bull market for commodities, particularly silver, and citing the company in both publications. OTC Markets provided examples of the promotional material for reference.
Both CTS and WRG are third party marketing and advertising firms retained by the company to provide content distribution and advertising services. Each of the newsletters presented factual statements regarding the silver market and indicated the company's potential for growth as a result of the company's advanced-stage La Joya silver project in Durango, Mexico. The company provided CTS and WRG publicly available source information for the newsletters and did have editorial control over the materials, including reviewing the materials for factual accuracy prior to their dissemination.
The company does not believe the statements in the newsletters were false or misleading. The company has been advised by OTC Markets that OTC Markets takes the position that aspects of the statements were overly promotional. The company wishes to caution readers that these statements are speculative in nature. For more complete and specific information regarding the company, its prospects and the risks associated with those prospects, readers should consult the company's public filings on SEDAR, its website and other reliable sources. The company encourages investors to contact their investment advisers prior to making any investment.
Further, the company understands this promotional activity may have coincided with increased trading activity in the company's common shares beginning on or about Jan. 4, 2021. The company does not believe the promotional activities were a factor in the recent increase in trading volume in the company's common shares. Instead, the company attributes the increase to currently heightened interest in development-stage mineral projects, particularly gold and silver.
After an inquiry by management, none of the company's executive officers, directors or, to the knowledge of the company, any controlling shareholders, except as outlined herein, sold or purchased shares of common stock of the company within the past 90 days.
Within the past 90 days, Joseph Jerome Smulders and Garry Clark, directors of the company, sold shares in the context of the market and made all required securities filings in connection with such trades.
In the last 12 months, the company has engaged Joseph Cullen, Gold Standard Media LLC, Future Money Trends LLC, Wallace Hill Partners Ltd., Pinnacle Ad Network and David Skarica to provide investor relations, public relations services, marketing or other related services.
The OTC Markets has further requested that the company state whether it has issued any shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance. The company represents, as disclosed in its public filings on SEDAR and allowed under the policies of the Canadian Securities Exchange, that is has issued common shares at a discount to the market price at the time of the offering, as more fully described herein.
On Sept. 17, 2020, pursuant to a private placement, the company issued 7.5-million common shares at a price of $1.40 per common share. The market price of the company's common shares on Sept. 17, 2020, was $1.70. On Dec. 29, 2020, pursuant to a private placement, the company issued 400,000 common shares at a price of $1.40 per common share. The market price of the company's common shares on Dec. 29, 2020 was $1.77.
About Silver Dollar Resources Inc.
Silver Dollar Resources is a mineral exploration company focused on creating shareholder value by finding and developing economic precious and base metal deposits. Having completed its initial public offering in May, 2020, the company trades on the Canadian Securities Exchange under the symbol SLV. Silver Dollar's projects are located in two of the prolific mining jurisdictions in the world and include the advanced exploration-stage/development-stage La Joya silver project in Durango, Mexico, and the discovery-stage Pakwash Lake and the Longlegged Lake properties in the Red Lake mining district of Ontario, Canada. The company has an aggressive growth strategy and is actively reviewing projects in mining-friendly jurisdictions internationally for potential acquisition.