ya lending practices

http://www.smh.com.au/business/shareholdercide--diluted-to-death-20121207-2b1be.html#ixzz2EQsFtnzE
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Yorkville and its founder, Mark Angelo, have been charged with fraud by the US Securities and Exchanges Commission.

As an aside, Yorkville is also financier to the likes of Drillsearch, Greenland Minerals, Nexus, Cougar Energy, Peninsular Mining, Aurox Resources, St Barbara, European Gas, Toro Energy, Lynas, Arafura Resources, Admiralty Resources, Linc Energy, Unwired, Industrea, Murchison Metals, Queensland Gas Company and Fortescue Metals.

YA practices a pernicious form of lending called ''death spiral financing'', where it is issued with shares in the company with which it has struck its funding deal - usually a company desperate for cash.

YA can therefore ''short'' the stock in the knowledge that it won't have to buy back the shares on-market to cover its position.

So shareholders in the above might care to check the status of their credit arrangements with Yorkville, or YA Global as it is known.


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