RE: Hope shorting29 Apr 2019 22:22
Is a useful point: if FRR were given info by YA, then why hasn't this been used?!
We're of course assuming a couple of things:
1. That YA had information to give
2. Not clear that FRR has yet used this information (provided YA had it to give).
On 1, we believe YA got off lightly when they were caught red-handed naked shorting FRR Stock. Why were they let off so lightly? After all, naked short selling is a major offence and the US's SEC have been after YA for some time. It seems to me and many others that restructuring the YA debt was letting YA off lightly given a) the severity of the offence and b) they were caught in the act, in full view of the market and the authorities. From the 19th Oct 2018 Update:
"On 18 October 2018, the Company and YA have agreed to resolve their differences as announced on 17 September 2018 and 19 September 2018 by way of restructuring the outstanding Series A Preferred Convertible Shares ("Series A shares") redemption schedule and retracting and releasing each other from mutual claims, as described below."
https://www.investegate.co.uk/frontera-resources--frr-/rns/update-regarding-ya-ii-pn--ltd-matter/201810190700025391E/
Clearly the restructuring of the debt was in our favour. Therefore, safe to assume that YA were caught doing something and agreed to the restructuring of the debt. They referred to this new deal as resolving ‘their differences’. But we know these weren’t just differences. One party was caught in the act of doing something illegal, something that had material implications for the other.
Again, YA could have been dealt with way more harshly than this. So why not?
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On 2, given the case is ongoing and seems finely balanced, possibly could either way, might deduce one of three things; a) there is no YA information; b) there is YA information, but it has not been sufficient; and c) there is YA but they have not deployed it yet.
If a), then got to wonder why YA got away so easily.
It is possible that the YA information is there and is good but, and as others have suggested, it is not possible for Hope to come to an OoCS. It is very possible and even likely that he has not naked shorted FRR. It is possible however that Hope encouraged TW and others into shorting FRR and that a relisting will burn them badly. And that, ultimately, they have evidence and are prepared to burn him in return if this goes badly for them. This is a possibility if folks believe Hope would not have been crazy enough to [naked] short FRR himself (he wouldn’t need to naked short, evidence of plain shorting would be sufficient regarding breach of fiduciary duties).
Having said this, have to admit, haven’t seen any evidence of YA evidence in the trail of court papers. Were YA let off to get this sorted as there was a bigger court case to fight? Or are holding it in reserve?
These are just theories and thoughts, tying to work things out from what little
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