Retail Investor's Heads Up In my opinion,..just got off the phone with a long time friend out on the West Coast. Owner of multiple EV properties accross 3 Western Provincess along with their connections would tye up most good claims in Canada..
Down-Ticking
your company share ...is a hot topic amongst the Junior Mining Sector.
Junior Exploration, is nothing new , which is based on raising funds to due the exploration .
The game here is Raising the Funds. The Company makes a few appointments with Bay St. Institutions and a couple smaller side street Towers . Showing their detailed plans and gelogical surveys try to make a good deal for the company./
The Offer , is the same guide - line to follow no matter which side of the street you go to . The 9 trading exchanges all trade your company share. Not all 9 exchanges have the same trading rules which can create trading problems for Retail Investors..
Offer, The company wants 3 Million to carry out Their exploration and for Company expencess. The Institution, values your project and agrees on price ...
Heres what happens next , befor you get your check.. The Institution values your project as being able to handle 1.5 million raised as flow through shares and 1.5 Million as PP shares. The 15 million FF shares at 10 cents and 15 Million PP shares at 10 cents for 30 million shares. The shares also come with a full warrant intitle to purchase a full share at a higher price for a totaol of 60 million shares if warrant gets exercised.
Wait, also the Institution gets a percntage of shares as free warants and also gets the normal six percent charging instituion fees...
The $ 3 m after Deduction s$$$. The check is no $ 2.5 M .....
The 15 million FF shares, have a 50 % tax deduction giving the Instituion a 5 cent cost base and or the Investior owner of the FF can transfer his share into a Reisterd account and get another 50 % tax break .This gives a zero cost base on FF shares. Flowthrough shares are Only sold in Canada and are forced onto the mining sector as a tax grab..
PP shares raised as 15 million shares do not get the same tax deductions so a junior trying to raise money without FT has a harder time, but the Institution still gets all their free warrants and 6 + % off the top
PS,.whats this all mean,.. in my opinion here,..The FF share , because of the 50 % tax break gives the Institution a 50% gain at the opening so what we see is on news the Company share gets sold off. Reason being news creats volume so the Institution dumps all their 15 million FF share and Free warrants .
The PP shares are taken down in price as new share holder wait for more news , but Wait this is the Plan here Remember junior mining is based on raising funds so what happens next..The Institution exchanges will follow your results and know you will be back for more Funds and so the game continues as Share Holders support the Institution Industry.
BAY/AWM......see a constant down-ticking always a milli-second prior the closing Bell which is done for reasons here mentioned and to give a company a bad name in the investing community..
ps,.Please Phone IIroc and voice your concerns no matter what company your in-vested in..tell of down-ticking..its your money..
Traps7
https://savecanadianmining