XRC - capital increaseit is quite surprising that XRC has done this capital increase now. Communication was not indicating that there is additional need for capital esp. with over C$30 millions in cash. In contrast, XRC was stating that the measure which will be taken by end of Q2 will not need more that roughly C$20 millions.
The question why now is a question which has to be answered by XRC management. I was not amused to learn that they are doing a capital increase while they still have C$36 mio. in the treasury.
I have spoken to Rob myself last week. He stated that he does not know why the market is treating XRC so poorly. I do have to accept that he cannot communicate the intention of a capital increase to me.
HOWEVER, the mere fact that XRC was not following the increase in POG suggests that during the last 10 trading days (or even more, starting with no reaction on the new NI43-101) the market was already taking this information into account. Thus, someone (XRC, people or banks involved in the capital increase) must have acted already on that information or this information must have been leaked to the market. This is called insider trading. The Canadian Market seems to be very vulnerable for this kind of flagging of upcoming information. This is a clear sign that the Canadian market - after outperforming most to the other markets in the last decade - becomes difficult for normal investors since people seems not to act professionally and market regulation appears to be not existing.
Dear XRC management, please elaborate on the following:
* necessity of having a capital increase at this point in time?
* for which purposes do you want to utilise the proceeds of the capital increase?
* how will you ensure in the future that publication of NR will not be flagged by trading volume the day before the NR is published?
* how will you ensure that a capital increase will not be flagged by trading volume and share price weeks before the actual share increase takes place?