WR1 (ASX) Ann: Trading Halt

Originally posted by Helios11: ↑

Cracking post.

Some background to FTF that may disgust many of you.

FTF organized & managed via Pear Tree Securities in NY and Canada, its NOT a 24hour process. A company, Wr1/LLI/PMT must apply so donors are available and then as part of Due Diligence the on sell/block trade MUST be assured, I am lead to believe its a least a 2-3week process and once started it cant be stopped.

Ergo companies like Argonaut may or may not be aware that a CR is happening.

I believe wr1 were ~1.40 when this process started and the purpose was due to an unknown FTF rule for Quebec residents under a Canadian Corporation act.

A raise at 1.40 for this cash component would mean the first rollover would have been from cash raised at 2.10 and ~1.30. I belive the plan had been for a strategic to come on board after Renard studies were completed to assist with the C$15mil Renard "Call" cost etc.

Currently the Disclosure notice is for X shares to forfill the Renard Option at 87c. Looks like the raise for the next two options is at 85c, so the first C$8mil is accounted for until 28 Feb 2025 when then 3rd option expires. The Option continuation is to fund C&M while wr1 completes due diligence.

Wr1 now has until 28 Feb 2025 to bring on Strategic for the C$15mil along with Wr1 being allowed to utilize 2023 FTF throughout the remainder of this year, and continue into 2025 with this FTF 12mil CAD ~ 30k of drilling.

But.....while i ranted about that issue, Wr1 in that 2 week period in which brokers would have been contacted.

Wr1 - 27/5 - 08/6 (full screen hot below)

Loyal from 10 -20 May - Biggest seller Argonaut

Pmt - May 10 - 25 - Not argonaut, why, because they were the broker for their CR along with UBS.

Last September, same thing. Samson Li leaked something on X but didn't understand FTF and just assumed 1.20. Along with UBS who dumped a few funds also dumped.

I have spent some time going over data last 12months. Unfortunately, there is a common theme, certain brokers dumping after being informed that a FTF is going to happen that wont be stopped once started.

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Yep, disgusting.

One might question the legality of acting on information that is not available to other market participants that routinely reduces share price by 10-15%, although I am sure that is not what has happened here. Surely.

Likewise, brokers would be bound to confidentiality - but again, I am sure they only act in accordance with requirements.

So surely this is a coincidence and an isolated FTF-related incident.

I am sure this goes some way towards explaining why the SP falls on a FTF raise despite it not having the same dilutionary affect as a vanilla CR. The brokers see arbitrage in the gap between the current SP and the raise price offered to them and sophistos - and both sell it down for a few extra gold coins.

The net impact of this is that Argonaut saved some golden dollars avoiding the SP fall from $1.40ish back to say $1.20-$1.25, but caused the SP to crash back to $1 (and then below) and the MC to be decimated.

All cool and normal in ASX land. I guess if the macro was better, the outcome would have been different.

Interestingly enough, Argonaut (and UBS) caused the SP to plummet when the MRE was first released in December last year. Another 'good news' event that saw the SP decimated by the actions of brokers. Got to love the way the West bludgeons its strategic interests with its own extreme greed.

Argonaut's trading was the more fascinating of the two - they bought up on the day of the AGM when it was announced the MRE was coming in December. Then they sold into the buying pressure in the lead up to that announcement, which of course moderated price appreciation in the lead up to the ann.

Then, on the day of MRE ann, Argonaut dumped their shares at open into the buy stack which of course maximised a fall in the SP. Whether that was their intent or not is not clear. Remember the discussion that then ensued about what was wrong with the MRE? Anyone else get that sense of de javu?

The following two days after the MRE ann Argonaut continued selling.

Under the sustained Agronaut and UBS selling pressure, the SP fell from $1.26ish down to 85c. On the good news of the MRE ann. Good grief.

And the kicker for me - guess what they did then? Yes, that's right, they bought back up on the fourth day after the ann for a much lower price.