NPK buying window closing (closed?)With the NPK share price above $1, I had predicted in a post back in January that there would be a a unique buying window up until March 12 2021 as 1.4 million $1 warrants approached their expiry date. Warrant holders had the good fortune to be able sell their current NPK shares into the $1 plus price range, and then replace them with their guaranteed $1 purchase price warrants. This set up the conditions for an immediate, risk free capital gain if the warrant holder did not want to simply exercise and add the $1 shares to their existing holdings.
Unfortunately for any insiders, they will have to go ahead and exercise their warrants without having the offsetting option of selling shares due to the trading limits placed on these individuals. There are blackout periods for insider trading imposed by Canadian securities legislation following each quarter end. No trades are allowed until the results of the quarter are released to the public on SEDAR. So for Verde, this means no insider trading allowed between January 1, 2021 and the release of the 2020 annual audited statement, currently planned for March 30, 2021. Insiders could then conceivably trade on Wednesday March 31, 2021, before immediately going into blackout again on April 1, 2021 until the 2021 Q1 financial statements are released.
All that being said, not sure any of our insiders are interested in selling their holdings, but it does limit their opportunity to buy into the rapidly rising valuations we have experienced so far in 2021.
At the end of this week, any unexercised warrants expire worthless. We hopefully will get a timely news release from management with a report as to exactly how many of the March 2021 $1 warrants were in fact exercised.
With the NPK shares trading this morning at $1.34 I would suggest the window where you could pick up 50,000 NPK shares for under $1.20 has passed, and buyers will have to be prepared to pay higher prices if they want to acquire any of the 50 million shares in the hands of committed, long term Verde investors.
Cheers,
S.