Pulsar Helium Inc V.PLSR

Big drop

[rhodiumd]

Big drop on high volume. Wonder if warrant holders are cashing out to spend on summer vacation and sports cars lol

[Margin321]

I can't think of a specific reason for a sudden big drop of this size, given the timing of what is right ahead.  There might be a soft Sproule resource report-  but I think it is too early for that. They won't start the summer drilling until the longer 2D seismic line is done and the other geophysics are fully interpreted, to help to position the two step out wells optimally

[Bertie20]

I assume the issue is that they don't have the finance in place for their forward plans. That makes it very easy to short the stock, as the company will at some point be required to dilute (at a discount). The one factor that could change all that would be if AB Capital converted its warrants, which would raise around C$4m (enough to deepen the well). Personally, I'm not thinking the

[Margin321]

Bertie20: I also think there may be some short pressure here driving share price down. Maybe naked shorting plannng to buy shares back at lower price very profitably.  And then reload at even lower price if an issue is required.  That has been the playbook in Canadian microcap resource stocks for some time. Terry Lynch and others have been working to docment this and change some

[Bertie20]

Great post; many thanks Margin321. Very interesting. One thing I would clarify is that they absolutely do not have enough cash for any drilling. The jetstream well cost an insane amount (something like US$3.8m, and I think that's before testing), and they're currently planning to deepen the well and drill two step-out wells. 

[Margin321]

Thanks. They got CAD 4.5 million Jan 8 from AB Capital in private placement at 23 cents. Then they did accelerated warrant placement on May for another CAD 5 million which they said would let them expand their 2024 plan of work. But it is probably not enough for everything they have outlned, including deepening the first well, drilling the two step out wells, and required additional testing. If

[Dmmh2018]

I believe there was about 1/2 of 1 percent of the total outstanding shares traded yesterday Not exactly what I would classify as high volume