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Highlands Natural Resources - the bogus disposal to add to the covert placing - this stinks

By Tom Winnifrith, The Sheriff of AIM | Wednesday 15 June 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


I have already covered the shocking covert bailout placing by uber-ramp Highlands Natural Resources (HNR) HERE. But today it has also announced a quite ludicrous bogus disposal which even the Bulletin Board Morons seem to concede makes this piece of Turkish a laughing stock. It involves fellow stockmarket dog with fleas Opera Investments (OPRA)

You will remember that Opera spunked material sums negotiating an RTO to justify its main market listing. But on May 9 - after 10 months of talks - its deal fell apart. Jeepers what does it do next? It just had to do a deal, any deal to justify its miserable existence. Step forward Highland Natural Resources (HNR).

On 8 June 2016 - is that not last week? - Highlands picked up some Helium exploration assets in Montana for $91,050.73. Today Opera has agreed to buy those assets for £4 million payable in Opera shares. That is valuing Opera at £2.5 million which given that it has net assets of well under £400,000 is itself a total joke.

As part of this utterly ludicrous sham deal Opera has to raise £750,000 in fresh equity at the same price. So that will value a company with net assets of c£400,000 and some exploration licenses worth $91,050.73 at £6.5 million pre fund raise. Only a total frigging moron would sign up to that.

Highlands says the deal shows its ability to create shareholder value. I suggest it shows that it is run by A1 bullshitters and so is Opera and both are stonking sells. Both should trade at a massive discount to NAV not any sort of premium let alone the ridiculous premia at which they trade today. SELL!


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