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First one visible? Looks like Canadian based fund
https://www.shorttracker.co.uk/company/GB00B0WD0R35/
Interesting but it says 0% change...so what happens when they have to close their short...of 11.5 million shares...?
Yep Red it’s obvious
Do folk really think JiangXi will be happy to sit with 5-6% ….. ? And when heir stake continues to build will BHP tolerate it ?
We also have the small matter of the potential placing of the CGP stock at any time…. I wonder who will be the recipient
DBW, do we really need the CGP money? Not in the short term, so there's probably no point in selling the shares now. Hold them in treasury and avoid further dilution. They can be offered to the buyer in due course.
I completely agree addickt...for the time being they won't be sold, in order to protect the AGM votes...
Then surely held in Treasury as there is no need to sell them while someobody is prepared to hoover up shares in the market...
So heres a Christmas conspiracy theory...
Maxit got 23 million shares...
0.5% shorted by XIB Asset Management is 11.5 million shares...half the placed shares...
So just suppose the shorted shares were to hold the SP down (using Algos) so that those 'in the know' could fill their boots, knowing that the short could be closed by taking up half the 23 million at 16.3p..?
And heres a coincidence...
Maxit Capital 181 Bay Street Toronto
XIB Asset Management 200 Bay Street Toronto...
Sean McNulty...Merger-Arbitrage specialist...
And heres an interesting article...
https://thehedgefundjournal.com/making-event-driven-strategies-work-in-latin-america/
"An example of this is in the area of merger arbitrage. In developed markets, information is so widely disbursed and rapidly acted-upon by such a large number of investors that the spreads in a typical merger arbitrage deal rapidly narrow to the point that currently it is an uninteresting strategy. In Latin America, however, merger arbitrage deals have been so few and far between that they have simply not attracted the attention of the vast majority of investors. As such, when they do occur, few players are in a position to seize the opportunity, or to properly evaluate the risks involved. Consequently, the spreads tend not to be arbitraged out as they would be in more developed markets. For those that are properly structured to take advantage of this, the returns can be quite attractive."
That is decent sleuthing Redknight.
Please stick to posts of this standard.
Agree, brilliant post RK.
Now it makes sense...
Although the volumes in CGP have been poor that dioesn't mean that sizeable transactions haven't taken place...
As I mentioned before...there may well be many CGP shareholders who don't want to exhcn age their CDN denominated, Toronto listed shares for sterling denominated shares listed in London.
So supposing they find a buyer who just happens to be a 'merger arbitrageur'...the latter buys the CGP shares at below full value, meanwhile shorting the target company i.e. SOLG...
Then closes the short before the merger goes through and pockets the difference...
RK, you should write children's fiction books! You'd be really at it!
Really good at it that should read. That's regarding your 10.11am post.
Your desperation is pityful.
What do you disagree with Copperpot?
I don't always see eye to eye with Redknight but nothing in that post is wildly out of place.
Specialist funds do arb mergers and other special situations. That's a fact. SolGold's transaction with CGP should provide an opportunity for them.
Hi RK, after the merger completes Solg shares will continue to be listed on both London and Toronto, and one of the conditions precedent for completion is the approval of both TSX and LSE for the listing and admission to trading of the new Solg shares to be issued as part of the transaction.
What we know is.... $50m royalty deal signed with Osisko (which is basically the founding partner Maxit's side hustle! We have Maxit gifting themselves 23m shares and Scott and co 2m shares. And we have the Chinese up for 155m.
Thus far... Maxit are all over this and for the life of me I seriously can't understand why the regulators are not all over them. It's tantamount to insider trading!
Now remember.... Maxit are supposed to be working for SOLG shareholders to secure us the best deal.... not lining their own pockets at every given opportunity!!!
And just to put Maxit's skills into the light of day... remember.... they got in early with cheap shares in CGP and SOLG. They sold out the bulk of their SOLG shares to BHP for 25.5p 3 years ago!! Now they are filling their boots with cheap shares at 16p/17p. Ugly stuff indeed. These money men have no shame at all. And that worries me.
Would you not sell something at 25p, to buy it back at 17p?
They are in the job to make money, just like we are here to make money.
If they hold solg shares they are aligned with us for the SR