Post by
coolandnice on Feb 01, 2021 5:32pm
Appian is not dumb
I spent the past couple hours assembling the history of Appian's stock purchases. They now own 25% of Harte and are much more underwater than me. Yet their % ownership has increased over time and their July investment gives them 13.5c warrants that only expire in 2025:
Q4 2016 Appian buys 33m shares at 30c and increases ownership to 16.5%.
Q3 2017 Appian buys about 9M shares at 47c and ownership increases to 20%
Q4 2017 Appian acquires 20m shares at 62c and maintains ownership percentage
Q2 2019 Appian's $10M investment is converted to shares at 27c. The June 2019 News release states Appian's ownership in Harte cannot exceed 30% until 18 months after this closing. This restriction should be gone as of Jan 2021 which means don't be surprised if Appian will take a bigger slice of the pie when a new deal to push out 2021 and 2022 debt payments is announced.
Q1 2020 Appian increases investment to 25% share which means they purchased another 42M shares at 16 cents.
According to the Jan 2021 presentation Appian owns 25% of harte and based on the data above they're far more underwater than I am. It's in their interest to see this company succeeed and thrive. Patience will pay.
Two other points that point to a bright future for Harte (assuming Operations continue improving and Gold doesn't fall below $1600/oz):
1) Appian bought a 1.5% nSR in Dec 2019 for $7.5M which suggests the property is valued at $500M. They bought another 0.5% NSR in Sept 2020 for another $2.5M.
2) Harte's value really hasn't changed much since 2016. In Q4 2016 there were 533M shares and the price was 26c = 139M market cap. In Q3 2020 there were 968M shares and the price was 16c = 154M market cap.
Comment by
Camaroman on Feb 01, 2021 6:15pm
Great summary and perspective, I share that thinking and very good to see the numbers behind it. Thank you
Comment by
Flyhi2004 on Feb 01, 2021 7:03pm
Great review of the company CoolnNice.... It's time for the company to break out soon. It's been a long hard road. Appian wants out in 2023-2024 unless this really heat up to the upside.... It is time for the MAIN EVENT!!!!!
Comment by
Flyhi2004 on Feb 01, 2021 7:12pm
Speaking of thoughts..... Echelon did a private placement a couple years at 30 cents a share. I bet they are not too happy now also as the 6 million is now worth 3 million more or less... When they injected the cash the stock crashed shortly after they invested. We retail investors are not the only ones to suffer the pain of the Roman Empire. !!!!
Comment by
Mistyblue on Feb 02, 2021 10:07am
Does anyone think with 900 plus mil shares that a roll back is not far off or will that be on the back burner until production is at 1200 tpd. just a thought??
Comment by
investor864 on Feb 02, 2021 11:11am
This post has been removed in accordance with Community Policy
Comment by
Goldon45 on Feb 03, 2021 10:52am
He left because he could not control HRT.
Comment by
bufordpusser on Feb 04, 2021 5:13pm
Sprott left while he was able to leave with his investment. Shareholders losses so far 247 million. Liabilities 199 million. There are no options at this stage only hope that gold goes towards $10,000 per ounce.
Comment by
Fredfudpucker00 on Feb 04, 2021 6:26pm
As far as I know Eric Sprott never put any of his money in Harte.
Comment by
coolandnice on Feb 02, 2021 11:30am
That same question came up during the conference call where they discussed the 1200 tpd study. Management said recapitalization will wait 1-2 years until the operation is more stable and other priorities (ie debt) are dealt with.