A way to put the brakes on chronic seller named: "Big Water"Here's another idea. A month ago, NUG made several announcements, including:
- Enrolling a third industry partner to provide additional competitive tension; although NuLegacy has sufficient cash (C$15.0 million) to fund the next two years' work programs, management believes it would be good risk management to take advantage of an industry partner financing opportunity at higher prices to gain the financial independence required to achieve the stated objectives.
Off the top of my head, Big Water now owns less than half the 28.25 million shares they bought in 2014, when they paid 12.5 cents a share. Chances are real good they got their $3.5 million back by now.
I think management could visit with them about putting the brakes on selling more in the near term, which will tend to reduce downward price pressure. In exchange, management could agree to make their remaining shares part of those purchased by the new "third industry partner" when/if that happens. That will tend to have the effect of bringing in "third industry partner" at the higher prices mentioned in press release above. Big Water also benefits from higher prices. Another advantage is that this takes no treasury funds to execute, and would tend to improve the level of a 'financing opportunity' (Note to self: review with lawyers).
Note: Nothing herein prevents potential "third industry partners" from buying shares on the open market instead of arranging a 'financing opportunity' with manaqgement.
cc: Albert Matter