Who is participating in the SPP?, page-232

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meghotcop

663 Posts.

209

16/03/22

14:12

Post #: 60226659
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Originally posted by pagedown: ↑

If holders are trading and diligently adding a stop, then this can account for the drop in price.

Holders that sold it down to the SPP price only to buy into the SPP.

The volume has been higher since the 15/2. There are more free shares floating since Bergen exit, once the SPP details are announced on the 18th March we will find an equilibrium.

If we find that there is more raised, the 13M in can be reduced, If the company feels that the drop in price is too dramatic, they can announce a on market share buyback. The estimated VWAP 6.75 +/- 3% if the Share price drops under the SPP, shares could be purchased and held for THM issue on targets or cancelled if not achieved.

They can also announce an Option issue at 2 cents exercisable at 10.5 cents, used for debt reduction

IMO those that purchased at 10.5 cents will be grabbing the Options and selling on Market, reducing the Share price further, this allows the Share Buyback to buy back shares.

The appointment of Sue Klose is important to the guidance and planning for the company future, ie: B2B ordering, JIT manufacturing, agile delivery. allowing for local production for "International Brands"

This is a hypothetical scenario, in my view of the HLF view, in no way investment advice, just putting my opinions out there.

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Brilliant post. I should have thought of this.

During the VWAP period sell 200k HLF shares for around 8 cents and receive $16,000 minus broker fee. Fill in the SPP and buy back 200K on the assumption that you get filled and pay more or less 6.8 cents (0.85% * 7.6 cents); i.e. $13,600. Netting nearly $2,400 almost risk free - timing risk.

It appears though that not too many holders did that:

HLF Price at posting: 7.4¢ Sentiment: None Disclosure: Held
1 Upvote

0 Great analysis

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