Post by
rockminer56 on Nov 21, 2024 11:00am
DRAG share holdings
I dont think, from my experience that a Company like Deutsche R. would ever get involved in taking a large position in a developing mining company (penny stock) with the idea they will be selling their shares into the market place, a few hundred thousand or million at a go.
They would be looking for a takeover bid, and when it is high enough, they tender their shares, all at once, take their cash and move on to the next project..
Remember, it would (and will) be far easier to sell shares in Almonty at $3-4-5 dollar a share than .86 cents. It will also be easier for Mutual Funds and the like to invest, as in many case they are restricted by their by-laws from investing in anything under what used to be $2.00 per share
The big companies will want to see a working mine, ore processed at capacity, proflts, world demand and so on
Then they will take it over and probably Lewis will be an eager seller, same as his last venture.
Comment by
Natrav54 on Nov 21, 2024 11:07am
I agree that they cannot sell their shares on the open market. Whether a buyout or a follow on share issue, they will wait to get their price. Also, penny stocks are a real hassle to buy if you are an advisor. You have to jump through compliance hurdles just to buy the stock so most advisors will choose not to buy a penny stock