Yeah, there’s a reason they are buying on market and haven’t...

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Abacoolloo

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21/06/24

19:47

Post #: 74432861
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Originally posted by Stryhard: ↑

Well at least Barrenjoey, backed by Barclays and Magellan, appear to be a more credible financial firm than Black Manta Capital who CLZ would like shareholders to believe are about to front up $10 million on behalf of AuResources. Not going to happen, but more on that later.
It's hard to know what Barrenjoey are playing at. If they wanted to establish a position in CLZ they could've approached CLZ directly who would've been happy to issue them as many shares as they wanted at a steep discount. CLZ excel at issuing shares for cash, unfortunately not so good at mining for gold. So Barrenjoey, after a lot of smartar5e pip trading, now own 25 million shares which were bought on market from 1.2 cents down to .003 cents. Most shares are now changing hands at 002 cents so they're well in the red on their investment. But hey, they're listed as substantial holders owning 5% of the shares on issue. Needless to say, they won't retain that status for very long.
Over the years Whead Pty Ltd have provided loans to CLZ which total $2.1 million. These loans have been bundled together and Whead have agreed to accept payment in the form of 42 Convertible notes. Shareholders voted to approve the issue of these notes to Whead at the AGM. At any time now, Whead, at their own discretion, are able to convert these notes into ordinary shares in CLZ. The conversion price is a 20% discount to the 10 day volume weighted average price of shares as at the day immediately preceding the date on which the convertible notes are converted. The following is a quote from CLZ about these convertible notes which they released to the market in an announcement on the 24th April 2024: "The Directors note that, as there is no floor to the Conversion Price, the issue of Conversion Shares could be highly dilutive if the market price of Shares falls substantially over the period between when the Convertible Notes are issued and when they are converted." That is exactly what has happened. If the notes are converted at the current share price of .002 cents then Whead will be issued over a billion shares in CLZ. But if over the next couple of weeks the shares trade between .001 and .002 cents which is what I expect, then Whead will be issued over 2 billion shares.
It's worth pointing out that these shares are not secured over CLZ's assets (whatever they may be) so Whead will be hoping that CLZ is able to continue as a going concern so they can recoup what they can through the sale of shares on market.
And of course CLZ have many other creditors who are owed many hundreds of thousands of dollars. And many of those loans ARE secured against the company's assets so any number of creditors could force CLZ into receivership at any time. It's a delicately poised big mess this company has made in it's 11 or so years as a listed company.

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Yeah, there’s a reason they are buying on market and haven’t approached management IMO.
Hopefully they’ve done their homework on this mob which I’m sure they have.
My guess is that at this price it’s a cheap back door listing option/oportunity for another business they have. AIMO

CLZ Price at posting: 0.2¢ Sentiment: None Disclosure: Not Held
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