no mate, I did almost no DD nor research into KFM. I was about to invest in a company called RZ but I missed the last capital call so I had some extra money kicking around and as I was having a bit of a fish in my dam to clear my mind an Azure Kingfisher was flittering and flying in and out of the reeds under a tree. I like kingfishers so I had a look on the ASX if there was a company called kingfisher and lo and behold there was! even better it was in REE which I'd just missed out on by a couple of days so I just chucked $50k down as a punt. Later on that day I had a look through one of my 3 year old's junior science book (which he calls Rock Book) for the periodic table of elements and found the things that KFM are drilling for... I can neither spell nor pronounce most of those rare earths...
As for escrow periods and sell downs etc... I have to sign docs about being aware that should a liquidity event, specifically an IPO, occur in the next however long my shares purchased on whatever date will be held in Escrow for however long etc.. it's a pretty normal part of the investment process. Most of the things that I buy into at seed or pre-seed or angel rounds etc are medical investments and often they have what is called ESIC status under an ATO ruling. If you invest really early on in the piece like these people selling seed round shares now you have a target for your investment. Maybe these guys that you are looking at only thought they would get 5-10 X return and more likely ZERO return as it is a mining spec.. all of a sudden they are up 40-50 X and just in time for Christmas and/or if a recession is coming next year... why wouldn't you just dump and run? When I initially looked at RZ it was a couple of years ago and I didn't want to tie up $250k in something that I didn't really know much about, they still haven't IPO'd so I would be sitting there wanting to get my capital back... if RZ went IPO and I was able to just dump them and move on thats what I would do. Maybe the KFM seed guys were just tipping in to something that they knew the directors of and thought it would be a potential tax write off if it went belly up?
Don't over think what is happening with KFM. It is a punt for almost everyone on the register. there are always going to be people involved in drilling or mining etc that have bought in who intimately know what KFM are looking for and where etc but generally speaking drilling explorers are just a gamble. My mates in mining take punts on companies like KFM etc as they know all too well that the majority of times these sort of companies go nowhere long term but will get a bit of an excitement run and thats usually a good time to get out. That's my plan, mainly as I know extremely little about rare earths.
good luck with it all mate
KFM Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
