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Northern Freegold Resources Ltd. V.NFR

"Northern Freegold Resources Ltd is engaged in the exploration for mineral resources in the Yukon Territory, Canada and Arizona, USA."


TSXV:NFR - Post by User

Comment by tictactoe111on Apr 12, 2012 4:18pm
377 Views
Post# 19787717

RE: RE: RE: RE: RE: what happened

RE: RE: RE: RE: RE: what happened

Company releases news of a financing

Shorts start to enter market and sell stock they don't have access to 'on market'

Shorts aquire stock from placement to cover their position 'off market'

Shorts maintain warrants as a rule but reduce the amount company is able to raise forcing them back into the market and then the process repeats.

There is not much management can do about it other than make sure the stock is placed into the hands of people they trust, the broker is all important.

I would guess that Northern Securities Inc may have indicated to the shorts allowing them the ability to cover off market. https://www.northernsi.com/CapitalMarkets.htm

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