I hope you are right. Normally all big buyers are offset with shorts so the price drops. If shorting causing the price to drop to .01p then YA convert (afer 3 days), and close the short with their cln conversions. Having started shorting at 0.02 the make a massive profit.
They then let the price go back up again and then start the process over again. Eventually buyers run out and holders give up and sell and before you know it the price is virtually nothing.
However, with the price so low, YA need a lot of volume to convert, and they would not of just agreed to the loan, knowing as little as we do. AB would of wooed these investors by presenting to them reasons why the sp will increase not decrease, and this will hopefully mean YA will wait for positive news and convert after positive news delivers an increase to the sp.
There might just be an upside to the CLN, either way I think AB should go, due to his lack of sp management.
Take a look at the likes of REM another natural resources investment company, the aim market is not completely down on companies like this, all we require is good investments delivering good returns (like Tshipi), and a good front man (like DL) capable of a sustained marketing campaign and able to raise funds at premiums to lowly shareprices not massive discounts.
I'd be inclined to agree Kabaa, if only they hasn't shorted and spiralled it down every single other time they'd been involved with the company. I've held for years and I would say they have, until AB's shocking management decisions of late, been on par with the commodities slump for the share price demise from 1p plus all the way down to here.
Their VWAP will only take into account for the days following notice of conversion. They aren't likely to have given their notice of conversion the last couple days, judging by the lack of large shorts. I'd be inclined to say they might have started into today, hence the heavy offloading beginning. And with today's VWAP at 0.0226, they are in the money if they convert at 94% of that!
I'm also skeptical of good news being on the horizon, and if so, why the raise now at such an all time low? Surely hit the market with the good news, let the SP rise and then raise / death spiral at less dilutive levels. Wouldn't that make more sense, particularly from a BoD that took a quarter of a million (20% of the current mcap) in emoluments last year? I'm sure with the warrants thrown in the mix too, YA aren't too worried on the profitability of this deal. All IMO.
wonder who this guy is lol. thanking AB for his good work at RRR.
dave hone ‏@ds_hone Sep 6 @armcmb keep up the good work at rrr some people like me do appreciate all your hard work 0 retweets 0 favorites Reply Retweet Favorite More Andrew Bell ‏@armcmb Sep 6 @ds_hone Thanks. People like you are an inspiration and encouragement to us
looks like Doc is getting AB to move a bit as well.
Doc Holiday ‏@DDS_Doc_Holiday Sep 7 @armcmb when will you accept what your investors want? - I agree ignore the naysayers but accept the need to change.... - unless!!!!! 3 retweets 9 favorites Reply Retweet 3 Favorite 9 More Andrew Bell ‏@armcmb 23h23 hours ago @DDS_Doc_Holiday We need to change. But making the right change is what we are working on.
I don't buy into this YA going to short causing a death spiral.
If that was YA selling 26m at 0.0217, they have to buy it back cheaper to make a profit.
Lets say they try to buy back 26m shares using the CLN. They will pay 94% of the 3 lowest days of VWAP. The VWAP for the past 3 days must be about 0.024 or 0.025.
Times that by 94% and they are going to LOSE money if they try that game.
Sure they could try to short another few clips causing a panic but that doesn't always work. Quite often you are met with large buyers. Then if good news comes out on top, they are going to get ironed out badly.
For that reason, I don't think in this particular deal, YA will be shorting.
You register as a seller with Jupiter and the amount of shares you have. You are then advised that if a buyer is interested then they will contact directly. You don't set an asking price for your shares when you register as a seller. I'm on a forum in Australia and other holders have expressed similar sentiment
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