Ann: First Assay Results From Rae Delivers 58m @ 3.08% Copper, page-32

The stock appears to be facing the usual selling pressure following company announcements, which raises some concerns. It's unclear whether this is being driven by option holders converting and selling, rights being sold, or a combination of both. This activity is undoubtedly placing downward pressure on the share price.

It’s particularly puzzling given that the recent capital raise was priced at a premium to the last close—$0.025 per new share, with a 1-for-4 free attaching unlisted option at 4 cents. Under those terms, it’s difficult to understand the rationale behind selling at current levels. The persistent selling at 2.1 cents, especially if it’s the same party reloading, appears to be undermining the confidence of investors who participated in the raise and could be seen as unethical behavior.

I had considered taking a position this morning, but this type of selling activity is a red flag and discourages potential investors. One would hope that with someone of John Hancock’s influence involved, steps could be taken to ease the selling pressure and allow the share price to climb steadily as more updates about the copper project emerge.

In the meantime, I’ll be taking a “watch, wait, and see” approach under the current conditions.