Unsmegingbelievable – Is BAM Captial Trying to Rort Prana Holders
I may be reading too much into this, but I don’t think so. However, what follows is largely speculation.
It appears, BAM Capital, who recently bought 30 million Prana shares at $0.20 decided to try to avail themselves of the generous offer of ‘bonus’ shares if the share price closed under $0.19. Rather than act with integrity BAM Capital borrowed and sold Prana ADRs, which I surmise was to ensure the ‘bonus’ share trigger was hit. I’d call BAM Capital scum sucking opportunistic leeches, but it appears all they did was play the game. Of course I could be wrong and will happily post a retraction if someone enlightens me.
I’m joining the dots, but it appears Prana may have been complicit in BAM Capital’s attempt to secure the ‘bonus’ shares, which some may call stealing from their long term shareholders. In their indemnities Prana acknowledges “that you have not been asked to agree to desist from purchasing or selling, long and/or short“. So Prana know that restricting trading activity is the sensible thing to do and yet they allow it. I guess it would be almost unAmerican of BAM Capital not to try and obtain those bonus shares.
Of course none of this is actually unsmeginbelievable and is what I said was likely to happen. “I do wonder about the current motivation of the buyer. It will be interesting to see if PBT comes under any price pressure. After all an additional 3M shares does present more than a little motivation“.
30,000,000->short sales->27,303,000->Share registration for 27,303,000 shares/2,730,300 ADRs. Why not the full 30M? Ideas anyone?
I’m tired and besides which probably not smart enough to figure out what is going on here, but it doesn’t smell right to me. Fortunately, Prana has not yet closed under $0.19 and closed up today at $0.23 after closing at $0.19 for three days since the share sale.
Ordinary shares outstanding as of Sept 23 – 232,945,639
Plus 10M $0.30 options, 4.35M $0.446 options before Nov 30, 2009, 2.68M options June 30 2010 if price above $1 for five days, 5.395M at $0.37 before Oct 31 2010, 5.395M at $0.43 before Nov 30 2010. Total – 27.82M possible dilution.
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