RE:RE:The beginning to a pump and dump?FreedomFun55 wrote: I agree with the possibilty of your scenario Golden. "Maybe" :
- the remaining large holders wouldn't sell to KaAn on the cheap
- &/or called their bluff on starting the mine (with percieved buyer in the backround)
- this move gains control & percentage of shares for minimal cash
Eitherway it is a direct screwing of all non-KaAn shareholders & i will be shocked if the remaining large holders don't respond with legal action &/or a move of their own...
The question is, how badly can they continue to dilute with no consequences ???
With regards to the options, i'm no expert but i believe the original options can't be changed (lowered ect). They will either expire worthless or be exercised depending on the actual share price. Based on the recent management moves it would take a complete sale of the assets soon before the cash is all burned up & a reasonable offer to get the share price above $1.06. I don't know if there is anything stopping them from issuing a bunch more options at this new lower share price. They can take a 5 day average thru next week & would be getting options at the same price as whatever Cinese firm put up the 10 mil. Again, i dont know the rules on when & how often you can issue new options - guess we will find out. They already pulled a sickening / dirty move yesterday ...
Check your PM, Freedom.
Just on a note concerning the pump hypothesis:
If Ka An, private placement guy, and 10 million shares issued at .50c (though, it could be lower for all we know), all cash out at $1.50 - they will have an accumulative pot of $75 million.
If $100 million (CAD) is needed to take our SP to $1.50, well... they've already got 3/4ths of it. If that offer at $1.50 is to buy everything/everyone and the whole kit and caboodle, you can do it for pennies. Literally.
In this scenario, management has very clear control over the share price. They KNEW issuing shares at .56c would cause a huge haircut. In fact, brokers who could have shares to short at these levels made a killing yesterday on such an easy depreciation. Management KNEW of the ramification of such private placement regarding how the market would handle it.
Similarly, management knows how the inverse can be applied. If they have an upside price target in mind, they know just what is needed to take the price there.
If some shell company shows up and makes the bid at $1.50 ($100CAD million approx), this shell may not even have the $ to pay for it... but once everyone cashes out, they will be financed to pull it off.
Furthermore, the current BOD all signed non disclosure agreements to willingly accept those options at $1.05. On this premise alone, because they signed a non disclosure agreement, they likely know precisely what their exit price is. Otherwise, why take the job, and why take the options?!
The whole premise of a pump scenario instigated by management is they front-run at the markets expense. They load up ahead of everyone else. They act within their own interests. They depreciate their shares intentionally and load up even more. They do it by their own admission, and inversely pump and sell by their own admission.
How are we not witnessing what is clearly an attempt by the current group to do such a thing? Because if this is NOT their strategy, then everyone loses money.