EXPM:HRTFF - Post by User
Post by
coolandniceon Feb 01, 2021 5:32pm
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Post# 32440559
Appian is not dumb
Appian is not dumbI spent the past couple hours assembling the history of Appian's stock purchases. They now own 25% of Harte and are much more underwater than me. Yet their % ownership has increased over time and their July investment gives them 13.5c warrants that only expire in 2025:
Q4 2016 Appian buys 33m shares at 30c and increases ownership to 16.5%.
Q3 2017 Appian buys about 9M shares at 47c and ownership increases to 20%
Q4 2017 Appian acquires 20m shares at 62c and maintains ownership percentage
Q2 2019 Appian's $10M investment is converted to shares at 27c. The June 2019 News release states Appian's ownership in Harte cannot exceed 30% until 18 months after this closing. This restriction should be gone as of Jan 2021 which means don't be surprised if Appian will take a bigger slice of the pie when a new deal to push out 2021 and 2022 debt payments is announced.
Q1 2020 Appian increases investment to 25% share which means they purchased another 42M shares at 16 cents.
According to the Jan 2021 presentation Appian owns 25% of harte and based on the data above they're far more underwater than I am. It's in their interest to see this company succeeed and thrive. Patience will pay.
Two other points that point to a bright future for Harte (assuming Operations continue improving and Gold doesn't fall below $1600/oz):
1) Appian bought a 1.5% nSR in Dec 2019 for $7.5M which suggests the property is valued at $500M. They bought another 0.5% NSR in Sept 2020 for another $2.5M.
2) Harte's value really hasn't changed much since 2016. In Q4 2016 there were 533M shares and the price was 26c = 139M market cap. In Q3 2020 there were 968M shares and the price was 16c = 154M market cap.