The "reasons" are always financial.... and most likely will be revealed when Financing is finalised.
Imagine you are an Offtaker/Tier 1 or foreign ECA negotiating with ARU for product (signed/binding offtake for 7-10 yrs) and also know that ARU is also reliant on funding from your country/company, in order to get to production (a bit of "which came first...the chicken or the egg"). Who do you think really is holding the upper hand/the four aces in this game of poker. It is the ECA/offtaker. They know that without them, ARU is virtually worth little, but WITH THEM signed on for 30%+ offtake, the company is worth much much more than today's SP/MCap. Do you think the ECA wants to be rewarded (in some financial way) for their commitment....bloody oath !! The question for us shareholders (and Management) is how........
IMHO that is the main reason the shorts have been winning/are even present in the market. It is price manipulation, whilst negotiations are going on, and the lower the SP/MC the greater the rewards are to the Binding OffTakers, as a fair proportion of their "financing" will likely be repaid to them in ARU shares, part of which will be determined by what the SP was at the time of committing the finance (ie the lower the better for THEM and conversely the WORSE for existing SH).
My Gut Feeling is telling me that they won't get away with a lower "conversion price" than what Gina Rinehart paid for her 10% holding as GL & PS (management& BODs) are definitely not looking to "piss-off" Hancock Prospecting. The only way the conversion price will be lower than 0.37 is if HP is offered a similar deal for probably another 9.9% of the company.(as well as ALL Shareholders)
Personally I'm disappointed with the way Management have been handling SH communications. I understand some reasonings such as confidentiality of negotiations, in particular the Tier 1 Offtaker not wanting disclosure while they still are purchasing NdPr off China, however it is definitely leaving the SP open to further manipulation/shorting, and we will see in a few months time that when final binding OTs WITH FINANCING are announced that the SP will have hit its forever low, and it will bounce and start a new bull run (but will be limited in its highs by the fact that soooo many more shares will or will be issued to the Financiers. They are wanting a piece of the ARU pie, they are seeing the $$$ signs, and it is up to our Management to strike the right balance between getting us the Finance Nolan's needs vs how much of the company is "given away". The shorters are there, most likely doing the work of the binding Offtakers.
IMO management are better off providing OTs with a guaranteed lower NdPr price (eg 10% discount) than "give away" equity in ARU ie product discount in order to pay back the finance. It is a tough game of poker that is being played out.
All the above IMO, I have no direct evidence of such goings on, but it is the way I see it. It has created a very despondent BBB, who continues to hold a very large holding because he believes that the world needs this resource to come to into existence/production, not just for the West/geo-politics but for the Planet as we need efficient electrification of as many processes as possible for this planet to remain inhabitable for our grandchildren and beyond.
As I mentioned a few posts ago, bought more at 0.325 and that I was likely to regret that buy in the short-term..... but will one day be rewarded handsomely. Unfortunately I have no further funds available to purchase more at these near bargain basement prices (and am far too overweight ARU in my portfolio anyway). I am also building up some cash for the inevitable year we SH are asked for further funding (which I will happily apply for)
All IMVHO, DYOR (cause I have), GLTA(patient)LTH "Build it they (even Musk) will come for more" LTH over 1.0mil butless than 5.0 mil shares.
(20min delay)