ARU 6.06% 15.5¢ arafura rare earths ltd

Who benefits from Low ARU SP? Directors or Equity

  1. 2,504 Posts.
    lightbulb Created with Sketch. 1670
    So we all know the 18 month shorting in this stock. So who and why?

    We saw today, like we did in December 2023, when there was a capital raise. Our Directors gave the shorters back a bunch of shares to reduce their short stock outstanding. Ie 60m shares this time, while only 3.4m were traded on the day in question.

    But how did they get 165M shares, to short ARU, who has this many?

    Only one person, and that’s Gina!

    She loans, and a third party shorts!

    Who benefits?

    1. Darryl our CEO receives shares at a lower price. This means he get more shares. He therefore has absolute interest in the SP being low. He receives a fixed dollar amount at a point in time that hasn’t been. Other directors will also benefit with a low SP. We have to vote for this in the AGM. And guess who will vote it in? Gina and the people that get low priced equity in the upcoming raise… they love him for this! At the expense of us retail holders getting squashed.

    2. Gina will also benefit; Darrly will give Gina more shares in the capital rise. So the lower the SP, the cheaper it is for her to maintain her 10% holding.

    3. Notably, Peter are CFO also benefits. The shares he receives say 10M, are based around milestones.
    First milestone is debt. The second is the equity. Now, the lower the SP the easier it is to get the equity deal completed. It’s easy to get investors in with a low SP!

    So, how does that benefit retail shareholders?

    It doesn’t, they keep the SP lower, so we get more diluted. So, effectively we support the entire company, for the entire time, whilst they, give away our company to new players overseas and Gina at the last moment.

    We are left with 25%, and Darryl suggests we maintain value.

    Are they playing you for a fool?

    You decide on that one.

    The capital raise; I’m the 10th largest shareholder (give or take), I was offered no shares on this capital raise. Yet the instos that short the company got 60m again. I asked for shares, but this (for the 5th time, in 5 consecutive capital raises, was ignored, they claimed last time, they lost my details), this time, was told to see my adviser… my adviser is me!

    But, it’s a team effort, retail share holders who get scaled back in shares requested are ignored to give benefit to the shorters.

    A royal mess!
    Last edited by Birchcorp: Friday, 21:54
 
watchlist Created with Sketch. Add ARU (ASX) to my watchlist
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.