RE:RE:RE:RE:RE:RE:RE:RE:.66 offering Markets are down in the toilet. Everyone knows that the TSX composite is down like 40% YTD, and to be honest, I think things are going to get nasty this winter, and I mean really bad.
AVN is down about 58% YTD, slightly higher than the composite but not nearly as high as some of their peers.
Total Helium is down 76%
Global Helium is down 76%
Helium Evolution is down 64%
First Helium is up 11% (but they hit a pretty good oil well that is making them some cash)
If you take a step back on February 15, they closed at $1.61. On February 22, they did finance with Cormark at $1.23; by February 28, they closed at $1.21, with around 1.7mm shares being shorted. March 15 2.3mm shares being shorted.
This is what all these bankers do and why the system is always rigged in their favour and against retail and often puts a growing company in a tricky spot as they need money. They know a company needs money, so they short the stock, get in on the finance, pay back their shares and ride out a warrant ( now they have a free option to buy a share in a company if it performs well), AND it didn't cost them anything, lots of cases they already made money.
These stupid funds do this all day and can make a few hundred grand doing this over a few days. IIROC and the exchange allow naked shorting in Canada, which is the only way you can manipulate stocks like this, the SEC does not allow it in the US because if you allow people to short a stock they have not first borrowed when the calls come in it makes it possible that there could be more borrowed shares then all the shares issued in a company...... the SEC states this right on their website, but no not in Canada the funds and the bankers are all paid up with IIROC and the exchange so just look the other way.
This goes on day in and day out, and retail is the ones that constantly get screwed over. The system is all geared towards the funds. They get their 7-10% commission for doing the deal. The way to beat them as a retail investor is to find companies you believe will get to a cash flow position and ride it out, set it and forget it. That's why I like AVN, and I'm holding long-term. In my opinion, they have really good assets and an incredible O&G team. Some of the people on their team are like 30-year O&G legends. I've been in the O&G world more many years..... these people are known.
Anyway, now that my rant is done..... My Guess and I'm speculating, but I've seen this going on time and time again....
Stock is down YTD because markets are bad, and they probably figured, let's put out our own non-brokered PP, and it will generate some interest above what we announce, and we will avoid having the funds short us down again.... very hard to short if you have a 4 month hold.
The problem with this and where they made a mistake was thinking that in the current market conditions, any of the banks and funds will do any finance with a four-month hold. My guess is the funds wanted to get involved and offered to bring more money, but only if it was at-market finance with no hold ( which is what they just did). This would explain why they had to cancel the PP the way they did, as you can't cancel a finance and then announce another one or even elude to another one coming. There must be clear separation and a break to keep the regulators happy.
It will be interesting to see how much they end up getting from this finance, as it will show the level of interest. If my theory is correct, I respect them for trying to get it done without getting all these stupid funds involved but very hard to do, and they still ended up getting want they wanted a cheaper stock and a warrant. I've been buying it for a while. I think I bought some up around $1.90, picked up LOTS more this week and bought some in between. To each their own, but I'm in for the long game.... stock goes up, stock goes down.... I'm selling one share until they get to cash flow.
gimebackmymoni you have posted many many times about the manipulation, the only thing is its 99% of the time its not the company doing the manipulating.... These guys can turn on a computer and make a small cap stock go up or down just by running algo and they make money both ways.