Post by
shawshank2 on Sep 19, 2020 9:20am
Alleged fraud in article
UK-based commodities reporter Pratima Desai appears to have either been a useful idiot or a willing accomplice to a stock price run and subsequent insider sell-off of Canadian smallcap mining explorer Giga Metals (GIGA.V) after a false story based on unnamed sources suggesting the company was in discussions to partnering with Tesla (TSLA.Q). LONDON (Reuters) Tesla is in discussions with Canadian miner Giga Metals about helping to develop a large mine that would give the electric carmaker access to low carbon nickel for its batteries, three sources familiar with the matter said. Standard journalism practice would suggest those sources be named, or at least quoted, with information confirming the opening sentence of the story. But nowhere in the story did anyone say words that confirmed or even suggested that Tesla was indeed in talks with the company about helping to develop their proposed billion dollar nickel mine. In fact, the President of Giga declined to comment on Tesla for the story, instead explaining, Giga is actively engaged, and has been for some time, with automakers regarding our ability to produce carbon neutral nickel. As soon as the story was posted, GIGA stock went on a rampage. The Globe and Mail repeated the fake story, being as Reuters is a trusted syndication partner, which added to the interest levels. This forced the CEO of the company to issue a note reminding folks there was no material information on the way. GIGA METALS PROVIDES UPDATE ON RECENT TRADING ACTIVITY Giga Metals Corp. has provided an update regarding recent media reports. Giga Metals has been mentioned in recent media articles as they pertain to ongoing efforts to advance the Turnagain deposit to commercialization, said Martin Vydra, president. What I can say is that there is no material announcement forthcoming and we will keep regulators and investors informed of any material changes that require disclosure in accordance with securities regulations. Where things get suspect is what happened a month earlier, when company director Anthony Milewski executed 1.5 million stock options at $0.08 per, for $120,000, despite the stock having been illiquid for over a year. A week after that, GIGAs long dormant stock suddenly took off, from around $0.30 to near $0.75, in a single day. Milewskis timing was impeccable. Desais story was posted on September 11 and it took the GIGA market cap from $38 million to over $150 million. The day after the story, with the stock hitting $2.40 early, Milewski dropped the hammer and dumped 3 million shares at an average of $1.86, for $5.57 million, with the stock going as low as $1.40 during his sell-off. Two days later he sold another 450,000 shares for an average of $1.61, bringing him another $724,000. Milewskis selling was so intense and sudden, it tripped circuit breakers that halted the stock several times in a day. But Milewski wasnt alone in his pillaging of his own company. Heres Giga President Martin Vydra following suit, exercising 900,000 options at around $0.40, and immediately dumping them over two days at a price of $1.97 down to $1.46. good for $1.5 million stuffed into his back pocket.