By Tom Winnifrith | Friday 16 September 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.
The management of Highlands Natural Resources (HNR), notably Paul Mendell, still refuses to answer serious questions about their CVs or about RNS Statements made by Highlands that are simply not true and that silence should make any sane speculator run a mile. Meanwhile it continues with the pretence that it has found an institutional investor who should by now own 30% of the company but in fact owns no shares. Confused? Let me explain.
Highlands said that an "institutional investor" would buy warrants in Highlands from a company owned by Paul Mendell and Highlands CEO Robert Price. It would then exercise those warrants in tranches. This was an "institutional investor". Today tranche 3 of 5,000,000 shares were exercised meaning that the II has now exercised warrants over 15 million shares. With just under 50 million shares in issue that gives the II just over 30% of the company? So there should be a mandatory bid? Er. no.
In fact there has not even been a single TR1 and there will not be. For this is not an II but a spiv, a chancer who knows that Highlands is a worthless piece of Turkish and thus forward sells the shares to Bulletin Board Morons and when 5 million have been fobbed off at anything over 26p ( the base cost of the warrant 25p plus price paid to Price/Mendell) the spiv just exercises warrants. It is a guaranteed profit for the spiv and this rolling placing has now raised £3.75 million for Highlands without it having to admit that it is doing a placing.
Anyone with half a brain cell can see what is going on. But then on the Highlands shareholder list there are few who are that well endowed. Highlands shares are now 29p to sell giving a market cap of £14.5 million for a company with cash of c£3 million and which is burning that fast and has a stack of utterly worthless assets and management team whose track record stinks. Sell.
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