share muppets14 Jun 2017 17:17
Well they say imitation is the sincerest form of flattery; well, I trust that the Highlands Natural crew are feeling flattered as this is straight out of its playbook. Readers will recall that Highlands Natural joined the Sub-Standard List with limited cash but bought some rubbish for 30 million warrants at 25p that, once the share price was ramped mercilessly above that level, were sold to an “institutional investor” or flipped into the market depending on which version of the truth you go for and as a result, the company raised £7.5 million out of thin air. The fact that it is slowly ******* this away on pipedreams most notably in East Denver is neither here nor there, it raised the money and Monchhichi obviously wants a bit of that.
Its warrants are priced at 47.5p which would raise £14.55 million if all exercised which would make up for the pitiful sum of £2.1 million raised in the placing earlier this year.
The RNS is just ramping fodder through and through really. The extension of the 80p warrants; new 47.5p warrants; and talk of shares being issued as part of a deal at 60p. I smiled to myself that the investor base here is clearly totally non-plussed as the share price has hardly budged at 34p but this is indicative of an absolute ramp-fest ahead.
A slight side-note, I see that the CEO has acquired 5 million of these warrants for £50,000. I’m all for alignment of interests but he could have bought shares in the market with that money. If these warrants get flipped at 60p say following an acquisition announcement, he would make a quick £575,000 profit. Nice work if you can get it.
Why buy shares in the company like your lowly investors and merely double your money when you can ten-bag!
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