Alexei Sells, BoD, FCA29 Jan 2021 12:07
I've been reading this story with interest, however clarity would be useful. To do that it should be noted that there were three scenarios for Eurasia acquisition post Alexei sale RNS, a) acquisition was going ahead but at a lower price, b) acquisition fell through or c) no decision on acquisition had been made yet.
The problem for the BoD is that they had to deny their knowledge of this RNS, as options a) and b) would result in BoD being implicated in insider trading. They had no other option but to issue an RNS in the morning to avoid any damage to the company reputation. Any announcement on Thursday or today of a company acquisition would be detrimental to the BoD, but in order for the BoD to be absolved this SP needs to get back to it's original price range, which it hasn't. The jury for me is still out on the BoD.
But for a second let's assume that the BoD are telling the truth that the Alexei made a "transfer" of shares as opposed to an open "sale" of shares and that the BoD were in the dark. Would it justify a 40% fall in share price based on stop losses? My thoughts in that case are that the MMs have helped the price down in 30 minutes. Why is the share price still well below the original range? The MM's do have the right to sell at a price regulated by themselves, but it should be to keep the market fluid, not to take advantage of Alexei's RNS. In either case whether it's the MM's or the BoD, I feel sorry for the many who had large amounts invested here. I can only suggest that they group together and put forward a complaint to the FCA against both the BoD and the MMs.
GLA
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