Yesterday's NewsI decided to come out of the basement, to give you guys a little insight into what your hero Richard Watson is up to. Here is yesterday's news release:
Golden Arch Resources Ltd GAI
Shares issued 22,781,358 May 21 2002 close $.080
Tuesday May 21 2002
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Feb. 5, 2002.
No. of shares: Two million
Price: Five cents per share
Warrants: Two million non-transferable share purchase warrants for two million
What tricky Ricky has done, is run the stock to 8 cents in order to be able to issue the 5 cent private placement.
Here's how it's done:
Rick finds a shill (usually Duncan MacKay of England, if he even talks to Richard anymore) to buy the private placement. To finance the purchase, the shill will sell stock acquired through the last PP and have Canaccord direct the money into GAIs account. Even though the stock is in the shill's name, the stock is at Richard's disposal. Richard sells the stock into the market at inflated prices (read: 8 cents) to the suckers that his brokers (who are also on the dole) recruit. The shill also gets a nice payoff, usually to the tune of $ 25 - 50K. Now understand that Richard has 4 million shares to sell into the market. The warrants are just another way of printing free paper. So figure that 4 million shares @ 7 cents over the next year gives Richard another $ 280,000. He'll spend a token amount on "rights" to a play and "expense"
the rest. Something for his fans to cheer about. Then the stock goes back to 3 cents for another year, and Richard can do it all over again.
OK Richard, here's where you can bring your aliases out to lie and call me names.