Katanga Mining Ltd Ord KATFF

RE:RE:rights offering is subject to regulatory approval

[Sogosohubidu201]

@ shotfac : a draft example and need to revise:

Katanga Mining issued a news release on November 7 for 15 to 1 rights offering that had caused the Katanga share price to drop more than 50% in 2 days of November 7 and 8. The 15 to 1 rights offering is forced destruction of equity with intent to wipe out the remaining minority shareholders since majority of them can not afford to participate in the rights offering. The company debts are not due until the beginning of 2021 and the company will be ramping up to full production from the end of this year. To start the rights offering now is to take advantage of minority shareholders when share price is at the lowest level before the share price rises with the rise of cobalt and copper production and their prices from next year. Katanga and Glencore want to wipeout minority shareholders just before the turnaround of the company financial performance due to production ramping up and the increase in cobalt and copper price. The right offerings is also priced to take advantage of minority shareholders with 25% discount over 5 days volume average prior to the news release since few if any minority shareholders will be able to afford this.  I had watched the trading activity on level 2 for the 5 trading days prior to the news release of right offering. It appeared that there was a single big seller that held the share price at 0.35-0.36 by supplying a large ask volume. This is suspicious that this seller might be doing this for Katanga and Glencore to prevent the share price from rising higher for those 5 days. The volume average price of those 5 days may be used for rights offering with 25% discount.  This may be worth investigating for share price manipulation by someone on behalf of Katanga and Glencore.