I don't quite understand the negatives you outline for existing holders. I'll assume that you aren't very familiar with FRX?
Regarding trust. FRX tried to de-list from the ASX a year a go. This smashed investor's trus and aside from COVID is one of the major reason the share price is so undervalued.
Management explained the reason for attempting to de-list at the time, and have been trying desperately to regain confidence with investors since then. FRX have for the 1st time included all holders in the two most recent capital raises (at awesome prices). They have also provided smallholders first bite of any oversubscription, which has netted long suffering, but loyal holders with a handy return.
Why would a major holder undo all the rebuilding work for a couple hundred grand?
For argument's sake, let's say it was a P&D, who was it?
No substantial holder change notices have been issued since those busy trading days (nor director change notices). No broker was left with any of the shortfall. The Top 20 hold 90% of SOI. That leaves roughly 40m free float.
Isn't it more likely that many of the sales came from existing "unsophisticated" holders that were awarded a portion of the 20m in shortfall shares in the recent raise managed to flip them for a handy profit?
If you had been a holder and 'filled your boots' at $0.01 what would you when offered a 400%+ gain in a few days?
I believe it was HC hype that caused the spike. A red heart posts a credible investment thesis regarding the founder of JobStreet joining the register and FRX's upcoming launch of their IoT platform. Lot's of bored investors stuck at home, and jump on the next day trade.
As I mentioned recently, Bevan Slattery's investment in other tech minnows has propelled them to many multiples of their previous valuations. Another mining stock I indirectly hold went ballistic yesterday on HC hype.
The vast majority of existing holders would have a much higher average than the recent investors.
I do agree it's likely these "stale" holders *cough* day traders, who bought in a couple of weeks ago at 3, 4, 5+ cents may decide to cut and run next time FRX's share price appreciates, but I also believe it will take some news (the release of their IoT platform) to get things moving again.
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