By Tom Winnifrith | Wednesday 17 August 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.
Back on 15 June Highland Natural Resources (HNR) announced what was in essence a covert placing with a spiv share flipper. It was dressed up as something rather different but the failure of that spiv to issue a TR1 shows this laughable pretence up for what it is.
You will remember that DT Ultravert - a related party run by Highlands's bosses Paul - I won't answer damning questions - Mendell & Robert Price - agreed to sell warrants exercisable at 25p to this spiv at, first, 5p a pop, then just 1p as the share price plunged. It plunged because the spiv was forward selling. Had DT Ultravert tried to take a turn on flipping its warrants for a covert placing RNS disclosures would have revealed what was going on to all.
On 1 July the spiv exercised 5 million warrants. That netted DT ( aka Mendell & Price) £50,000 and it netted Highlands £1.25 million and it left the investor owning c13% of the equity. So a TRI would have followed right?
After all Highlands itself stated in an RNS " Diversion has today entered into arrangements to sell its entire holding of 30 million warrants in Highlands to an institutional investor (the "Institutional Investor") ... Whilst Diversion did not have the financial resources to exercise the warrants, the structure of the arrangements with the Institutional Investor specifically contemplate the warrants being exercised."
Institutional investor my arse. Highlands has refused to name the third party and the complete absence of a TRI shows it or he has simply flipped.
Now we have a new ramptastic RNS today. The shares have perked up to 28.375p which means that if the spiv can get away stock at the 28.25p offer he will be making a 2.25p per turn per share, Mendell and Price make 1p per share and cash guzzling Highlands gets 25p poer share on new warrants exercised. It is win win all round except for the poor mug punters buying this crap in the market.
If you are a shareholder in Highlands you should be demanding to know the identity of the spiv, oops I meant institutional investor, and asking where is the bloody TR1? Hint: there is no TR1 as the spiv sold weeks ago.
This remains a bargepole stock. Sell.
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