Good post TFG,I don't think BoA will be played by Regal,...

First 7 Last

Share
Profile

Follow
Hottin

6,961 Posts.

448

30/05/23

20:37

Post #: 68043244
Share

Originally posted by That Fundamental Guy: ↑

What amuses me somewhat about the lending of shares by Regal to BoA, is that BoA borrowed shares from Regal on 12 and 23 May ( from BoA substantial shareholder notice). The number of shares borrowed total 45,486,681, which happens to be 4.95% of the total shares on issue - just below the substantial shareholder notice limit of 5%.

I can't think of any reason why BoA would borrow the shares from Regal other than to short sell.

However, with the ink hardly dry on the share borrowing agreement, Regal then go and dump 8.3 million shares on Thursday and 9.3 million shares on Friday, dropping the price from 4.5 cents to 3.5 cents. Did they simply want to sell their shares first? Or did they do that just to try and make it harder to BoA to make a buck short selling?

I also wonder if BoA ever intended to go over the 5% threshold? When borrowing 4.95% of the share capital from Regal, did someone at BoA forget that they held 4 million shares from buying on market or not know that someone in another team held 4 million shares? It would have been so much easier for BoA to play their games in stealth if they had kept under that 5% threshold.

Please note that there are still over 45 million shares held by Regal and lent to BoA. These could be sold by either BoA (short selling) or Regal (as BoA substantial shareholder notice indicates that the shares can be recalled by Regal at any time). If I was Regal and wanted to keep playing BoA, I would wait for BoA to short sell a significant number on market, slowly accumulate some more shares from BoA selling, and then ask for BoA to return the shares forcing BoA to buy on market and force the price up, allowing Regal to sell out at a higher price.

After the next substantial shareholder notice (which I guess will be BoA ceasing to be a substantial shareholder), I will be keeping an eye on the Top 20 shareholders that the company regularly posts to its website. Once Merrill Lynch Nominees falls down the ranks of the top shareholders, then we will know that BoA and Regal are running out of shares to sell.

Expand

Good post TFG,
I don't think BoA will be played by Regal, there must be some sort of agreement, but if they short sell the borrowed shares and Regal asks them to return it I don't know how they can make $$. Or is this to trick us and Regal makes $$ and they split the profit... haha I guess we'll know by Xmas .

HIO Price at posting: 3.8¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

DEL

Delorean to begin selling carbon offsets under regulation changes

Listen: HotCopper Wire Podcast 014 – Abu Dhabi wants to buy our 'true' oil and gas gem

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

Wednesday's HotCopper trends: DroneShield in Europe, Humm sale | June 25

ASX Market Close: Index flat as miners fall | June 25, 2025

First 7 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

(20min delay)
Last 1.8¢		Change 0.000(0.00%)		Mkt cap ! $18.29M

Open	High	Low	Value	Volume
2.0¢	2.0¢	1.8¢	$21.84K	1.175M

Buyers (Bids)

No.	Vol.	Price($)
4	1155852	1.8¢

Sellers (Offers)

Price($)	Vol.	No.
2.0¢	546299	9

View Market Depth

No.	Vol.	Price($)
4	1155852	0.018
6	835762	0.017
10	1697562	0.016
8	2256000	0.015
5	425713	0.014

Price($)	Vol.	No.
0.020	546299	9
0.021	144106	3
0.022	151000	2
0.023	40000	1
0.024	103969	1

Last trade - 16.10pm 25/06/2025 (20 minute delay)

HIO (ASX) Chart

Good post TFG,I don't think BoA will be played by Regal,...

Delorean to begin selling carbon offsets under regulation changes

Listen: HotCopper Wire Podcast 014 – Abu Dhabi wants to buy our 'true' oil and gas gem

Australia’s gas crisis is here – and dying coal plants aren’t helping

Wednesday's HotCopper trends: DroneShield in Europe, Humm sale | June 25

ASX Market Close: Index flat as miners fall | June 25, 2025

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Good post TFG,I don&apos;t think BoA will be played by Regal,...

Top Stories

Delorean to begin selling carbon offsets under regulation changes

Listen: HotCopper Wire Podcast 014 – Abu Dhabi wants to buy our 'true' oil and gas gem

Australia’s gas crisis is here – and dying coal plants aren’t helping

Wednesday's HotCopper trends: DroneShield in Europe, Humm sale | June 25

ASX Market Close: Index flat as miners fall | June 25, 2025

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Good post TFG,I don't think BoA will be played by Regal,...