Still shaking my head in awe... HAS rode up the REO prices (Neodymium price below reflective of HAS product) from late 2020 to early 2022 then share price fell into the REO price fall and overall market downturn driven rate rises and by pending global recession. REO prices continue to fall before and after the Twiggy loan to leverage into yet more RE exposure via purchase of 22% of NEO.
Cum-raise, falling REO prices (doubt HAS has makes much margin at current prices), falling stock market and management just ran the best pump and CR dump I've ever seen.
Stage 1; talk up interest in the project, debt and equity providers, project exposure into downstream European processors etc.
Stage 2; Borrow money at exorbitant rates with con notes no less, to bail out someone else's long term NEO shareholding to exit an illiquid position from a falling market (NEO also tracking the RE price downwards). Pump the investment like Twiggy actually buying stock at $5.50 and like holding 22% of NEO delivers control of NEO's off-take relationship with HAS (minority shareholder rights be damned).
Stage 3, After numpties have lapped up the sales pitch and chased the price up to Twiggy's con-note strike, TH and issue $110M at 18% discount back down where the share price was before the pump started (ie back before the Strategic Direction and Financing Update on July 4th).
Corporate advisers earned every cent of their retainer and CR fees... expect to see this nominated as Deal Of The Year at next years Diggers...
(20min delay)