RE:Estimated year end NAV and discount to NAV is approx 79%Unbelievably overvalued...
So the insiders put quite a lot of money in and they had institutions follow them in for $30 million back in 2017 (pre share consolidation of 1 for 20 at $0.25) at a price of $5.00 per share! Now the shares have been trading from $1 to $1.20 for most of December and there have been no insider buys or a move to repurchase even though they have $26 million in cash sitting on the balance sheet. Crazy. Are they waiting for it to go back up 5 times before they begin buying again??? Buying back 20% of the stock at these levels would be ridiculously accretive to the remaining shareholders.
TORONTO, April 20, 2017 (GLOBE NEWSWIRE) -- Sprott Resource Holdings Inc. (“SRHI”) (TSX: SRHI) is pleased to announce that it has closed its previously announced “best efforts” marketed offering (the “Offering”) of units (the “Offered Units”) made pursuant to an agency agreement dated April 3, 2017 between SRHI and a syndicate of agents led by Sprott Capital Partners, a division of Sprott Private Wealth LP, and including Haywood Securities Inc.
Pursuant to the Offering, SRHI sold 120,000,000 Offered Units at a price of $0.25 per Offered Unit for gross proceeds of $30,000,000. Each Offered Unit consisted of one class “A” common share in the capital of SRHI (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). The Warrants expire on February 9, 2022, and have an exercise price of $0.333 per Common Share.
That was quite the sweetener in the warrant they got back in April 2017 - only $5.50 out of the money now! Trading at $0.01 but you need 20 of them to get a share at $6.60. If the copper investment goes to plan I would think it could work but it's amazing how fast 3 years can go by....