I thought I would try and clarify a few things and remove some speculation around who is or is not selling. I have contacted CAP to get a current Top 20 list and I understand that will be put on their website shortly. I have compared that list to previous lists I have downloaded from CAP’s website.
To put this into context, there have been some recent shares issues.
Firstly, on 27 April 2021 there was an allotment of 75,808,112 shares from a private placement. Those shares were issued at 3.3 cents. I assume that funds were raised to have a large cash balance and be in a strong position to negotiate with Pure Metals (“PM”).
Secondly, as part of the JV reset with PM, there was another 90,800,000 shares issued. These were issued in two tranches of 45,000,000 on 18 May 2021 and 45,800,000 on 24 May 2021. As I have previously posted, I have assumed that CAP issued these shares to PM on the above dates. However, prior to the JV reset issued being resolved, there was a binding agreement between PM, the liquidator of ASI (PM’s majority shareholder) for those shares to be sold. This was arranged by Shaw. The purchasers of these shares agreed on a price of 4.3 cents per share (the share price before the JV reset was finalised). Therefore, once the shares were issued to PM there was a binding agreement that PM would sell the shares at 4.3 cents to the purchasers arranged by Shaw. Therefore, whilst the 90.8M shares were issued to PM, they were immediately sold to/purchased by others at 4.3 cents.
There has been some comments that Regal purchased all 90M shares. This is not correct.
The first substantial shareholder notice of Regal discloses they purchased 30,385,718 of the 45,000,000 shares issued in the first tranche. This is 67.52% of the shares issued.
The second substantial shareholder notice of Regal discloses they purchased 30,925,909 of the 45,800,000 shares issued in the second tranche. This is also 67.52% of the second tranche of shares issued.
I have therefore assumed that anyone acquiring some of the 90.8M shares received the same percentage of tranche 1 and tranche 2.
Therefore, in rough terms, in the last month there has been 166M shares issued. There shares on issue have increased from 310M to 475M. Therefore, a substantial increase. Of the 166M shares issued, 105M have been issued to shareholders other than Regal. Regal still holds 59M of their shares. Therefore, anyone wondering where the selling has been coming from, should instead look to those that purchased the 105M of other shares and not Regal.
For example, 1215 Capital Pty Limited were not on the Top 20 list as at 22 February 2021. They held 10,606,061 as at 27 April 2021 (so I assume they purchased these as part of the 3.3 cent issue). This company does not appear on the Top 20 list as at 28 May 2021.
Similarly, BT Portfolio Services Limited <Warrell Holdings SF A/C> were not on the Top 20 list as at 22 February 2021. They held 10,000,000 as at 27 April 2021 (so I assume they purchased these as part of the 3.3 cent issue). This company does not appear on the Top 20 list as at 28 May 2021.
Again, Mr Willi Rudin was not on the Top 20 list as at 22 February 2021. He held 4,788,757 as at 27 April 2021. This person does not appear on the Top 20 list as at 28 May 2021.
Those that have been complaining of selling pressure, it has not been coming from Regal as they still hold of 59M shares. However, I have pointed to a few above that have been selling and there was probably a number of the other shareholder who obtained some of the 105M shares not issued to Regal that have also been sold in full or in part.
If you look at the chart, the share price was climbing nicely up to 17 May. Then on 18 May 45M shares were issued. 30 million went to Regal and the other 15M to unknown shareholders. If a number of those sold down it could have contributed to the drop in share price (as could have those that sold for fear of others selling).
The second tranche of shares of 45.8M shares was issued on 24 May, with another 30M to Regal and 15M to others. The share price recovered nicely on 25 May after a fantastic announcement from CAP re the future and BFS funding interest. However, it has hovered around the 15 cent mark since then. Are many of the other 15M shareholders taking a quick profit? Perhaps?
I suspect that fairly soon, those that received some of the first 75M issue (on 27 April) or the 30M non Regal shareholders from the two PM issues (18 May and 24 May) will have soon sold out or taken enough profit.
I get a feeling that there seem to be more shareholders posting here that are wanting to take a longer term position on CAP. The more those types of holders acquire shares, the fewer shares that will be available at these prices. Stop complaining about those selling down if you are looking to take a longer position. Use it as an opportunity to buy if you believe in the longer term future of CAP.
Whilst the above focused on a few that have been selling, there have also been a number of longer term shareholders that have been acquiring more shares since February 2021 (and I would be one of those). Thank you to those who selling who allowed me to acquire some more.
