Cantex Mine Development Corp V.CD

Walloping in mud

[Oregonduck]

For some old-timers here stuck like squealing pigs for over 2 decades. They should have sold on the chicken run to $7.00.

As for the flow through shares in raising $5 million in April, 2022 - 10 million FT and 5 million non-FT. The FT placement done around $0.48 with one warrant attached. High-net worth investors got their CCE writeoff. However, they are not allowed to sell the FT until the 2 years are up or until April 2024. The onlyway to sell is to donate their FT shares to charity. They would get another tax writeoff as per CRA. The charity didn't want the damned shares and they consequently dumped them for cash causing the stock to collapse.

 

The stock subsequently fell from $0.50 in April 2022 to $0.25 with the big dump.

The market thinks the latest news release is neutral. No one wants lead or zinc. Yesterday's big vol did little to boost the stock price - just a small bump up.

Chuck is one of the worst promoters around.

[Stevesack]

Great post and valid Duck. I didn't know that angle. So you would get a write off for the charity donation at the bid price on the close of the day you donated the shares???

[Oregonduck]

Yup, Stevesack. It is a two-edged sword. Flow through financing assists the Co in raising capital, but it can be brutal for the share price. https://sprott.com/what-we-do/wealth-management/sprott-capital-partners/charitable-structured-flow-through-share-program/  

[MassiveisKing]

My understanding is you get a write off of 22% retroactive for 3 years, subject to only "listed charities" and charitable contributions of a minimum of 15 percent of your net worth at the retroactive date you elect to use. It is based on both net worth and and capital loses for the previous 3 years. 

[pennydredful]

last  sale   price  is   used  ,   however  charity   can  sell  at   any   price    . It   will  not  affect   the  tax   deduction.    For   example   donated   price   could  be   .12

[Oregonduck]

  The basis of my thesis is that the charity will.dump the shares to the third party - back to back on a pre-arranged deal. The buyer of the flow through will get double tax breaks unloading the shares.  CD stock fell off the wagon both times when Canaccord did the FT $6.50 back in 2019. Same thing happened in 2022 at $0.48. Chuck doesn't care if you drink the Koolaid

[pennydredful]

charity  dumps  to  third  parties   who  buy  what  is known  as  the back  end of the deal. 

[ukrop13]

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