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They don't need to look very far. I guarantee their plan consists of a good portion of funding coming from the large shareholders that also own the debt.
There are a few things they haven't accounted for though. Driving the price per share down is like a couple barricades snacking on pinfish not realizing they are just chumming the water for sharks.
Mudrick is going to be one of the funds buying at the lower share price.
Well that's his plan anyways.
Mudrick invests in flying drone taxis, sulphide heap leaching, and flavored vape pens marketed to high schoolers- what a visionary.
He can't even win via a system rigged in his favor. Really outsmarted himself on this one.
This isn't over until Jason Mudrick's wife divorces him and he goes back to selling used cars at the flea market.
They are driving down the price per share so they can convert their debt at the cheaper stock price. Sell it for 2 bucks convert debt at a dollar and you're doubling the amount of shares you convert with debt.
It's a breach of fiduciary duty.
Is that the plan again?
Hedge funds crater the stock price by selling 8 million shares then do another recapitalization by turning their debt into equity at the lower stock price.
Where is the money for the mill coming from other than Sprott?
Bleeding cash and laying off workers but still pissing away money drilling without capital for a mill. This after wasting all that time and money chasing the pipe dream of heap leaching sulfides.
The hedge funds got everything they deserved when they got into bed with jones and buffington. Now the stock will probably be delisted and thrown into chapter 22.
The novel sulfide heap leach experiment is over. Was never going to work with all the variables.
They should of just done a royalty stream to build a mill prior to bankruptcy. Complete and utter mismanagement by hubris NYC fools outsmarted by hicks in Nevada.
Read in between the lines:
They need a mill. The heap leaching of sulfides was always a pipe dream. Soda ash/Trona is too expensive and the variables of doing it on such a scale brings in so many unknowns.
Instead of being greedy they should of just sold forward royalties to stay out of bankruptcy and built out the mill. They'd be online right now and very profitabile at current gold and silver prices.
Being cute didn't work and it ain't all bad they just need to plan for a mill as the main processing facility. That's what your post is missing when looking at the sulfides- a mill.
A takeover is damn near impossible..
90% of the float and all the debt is owned by a few funds and they have an anti-takeover provision in the stockholder's agreement. The takeover would have to be via an offering and that would be a liquidation.
They are probably diluting themselves to buy back in with the 500 million offering or maybe give a friendly deal to a partner that will finance them which probably would include them paying themselves back.
The funds obviously want the low stock price to dilute again. That's been their MO this whole time- sacrifice one stake for a bigger piece of the pie.
Statute of Limitations is usually five years unless we argue it's an ongoing criminal conspiracy.
You from rueters?
The stock crashed after an earnings report that exposed the need for additional capex and more importantly opex.
Instead of just building a mill these clowns burned millions studying a pipe dream of heap leaching sulfide ore.
The legacy warrants have anti-dilution protections that trigger mechanical adjustments whenever the stock is sold.
Additionally the warrant contract gives holders rights to a cashless exercise for any offering. They already failed to allow for the cashless exercise in previous offerings let's see about this one.
Up to 500 million...
Companies usually overstate their offerings.
Here the hedge funds have been taking turns selling into any strength to suppress the price of HYMC because they know they can makeup by dilution in offerings and convertible bonds. If they are the ones that are buying the public offering why not sell for 3.50 then buy back for 3.00? Another fiduciary breach not that they would ever care though.
The recent warrant price action is a mystery to me. A lower price offering will bring the strike price down but that still doesn't explain some of the absurd premarket price action.
He didn't get burned by AMC stock he got burned by rival hedge funds that bought the call options mudrick wrote then drove up AMC with a fake meme play. It wasn't reddit that blew up AMC it was the hedgies posing as apes.
Mudrick is chum.
The Clown of Wall Street
Jason Mudrick. Played in Steve Cohen's sandbox and didn't realize he was the sucker.
AMC Bet by Hedge Fund Unravels Thanks to Meme-Stock Traders
Losses by Mudrick Capital show the risks of exposure to meme stocks
https://www.wsj.com/amp/articles/amc-bet-by-hedge-fund-unravels-thanks-to-meme-stock-traders-11623431320
It's a cold dish Jason you clown.
On June 8, 2021, Mudrick Specialty Fund sold all of its shares of HYMC Common Stock and warrants to purchase one (1) share of HYMC Common Stock for $3.50 per share and $0.40 per warrant, respectively, in privately negotiated transactions for $2,878,127.70 in the aggregate.
Who did they sell to? And which warrants?
Here's the story of an NYC vape salesman that gets in bed with a bunch of crooks in Nevada.
What did you think was going to happen Jason ?
There is no honor amongst thieves and you were always the fall guy.
And a biggie fry
The problem is they should have:
1) built the mill instead of wasting money on this sulfide leach pipe dream
2) turned in the embezzlers. Obviously the capital raised by ANV was dolled out and around Nevada.
3) and of course not screwed us over every chance they got.
The thing about low level criminals is there are always bigger criminals preying on them. Mudrick found out today it's a dog eat dog world lol.
Jason Mudrick found out today:
He's one of us ...
You know the old saying Jason- when you can't figure out who the sucker is at the poker table... Lol
It's like he's swimming in the ocean on the rag just sugar for sharks when they smell blood. Jason didn't see this coming when they sent Mudrick and Jones to testify. Or when vaping was getting banned and he didn't get the heads up.
Get that resume updated Jason Wendy's is hiring. Just look on the bright side when Mudrick gold digging wife leaves him she'll be taking half of nothing. Maybe Freddie will let him sleep on the couch.
Whitebox Advisors
Everyday after they delayed earnings.
Totally killed the little rally that was going on in HYMC. My guess is they want to dillute again at a lower price and issue warrants with a lower strike price.
What a shady company..
They delay earnings
The next three trading days one of the hedge funds on the board sells.
Guess they aren't done diluting. All this insider selling is to cap rallies and bring the price down for another secondary offering.
Never interrupt your enemy when he's making a mistak lol.
Great idea.. although I doubt this two bit podcaster cares about anything.
I didnt watch the whole interview did Mudrick even come out and admit they created the public SPAC to buy out their private holdings?
They are knowingly in violation of contractual obligations. A contract doesn't expire when the terms are breached. We'll have five years from October 22.
He created the SPAC to take his portfolio public. This was a premeditated heist additionally they:
1) structured a bunch of warrants with an illegal provision in the contract to give the board members additional benefits.
2) increased the interest rate on debt his fund owns. The hedge funds leveraged their positions to issue and keep rolling over their debt with higher rates. Couple weeks before the merger was announced they increased the interest to use the company as a personal ATM. It's a publicly traded company the SEC needs to wake up and attack these breaches of fiduciary duties with a derivative claim. They completely screwed over minority shareholders by putting the funds claims above them private shareholders. They were brazen enough to do this with a now publicly traded company.
3) lastly and let's stop overlooking this- the CEO and CFO destroyed equity when it was public AND WHEN THE COMPANY WAS PRIVATE got obvious payoffs for handing the keys to the company off to the hedge funds both in the bankruptcy and then with this SPAC. Why could they not seeking other options other than the premeditated SPAC merger? The total value given to the shareholders was 3 million dollars. The SEC needs to get off their behinds and take action before we take this into our own hands.
Jason Mudrick is a hack that has no idea the buzzsaw he's about to run into. I wouldn't let this guy manage a Wendy's and when we are done with him he'll be on the frosty machine and that is the best case scenario because it will be the only way he'll be able to get calories. I really don't see his wife staying with him to blend his food if/when he wakes up from his coma.
What a hack....
Didn't really he was such a pencil neck..
I'm 6'2 275 lbs... This isn't even going to be fair.
It will be fun as hell though.
They let Paulson into the secondary.
Unless we can convince him the warrants they sold him in that order are fraudulent he's not going to interested.
Would be nice if one these regulators did their jobs.
Probably save me a trip.
Did they delay earnings because the new officers are already proven to be incompetent or to give time to let shorts off the hook?
https://sec.report/fails.php?tc=HYMC
Following up with what I was saying about the short interest...
I'm saying there is a lag so this week's action won't show up for some time.
As far as shorts there are a reported 850,000 shares shorted and there is atleast another 650 shares available to borrow.
1.5 million shares usually isn't alot but with how thin this is held it makes me wonder who has the shares to lend? If you add the shorts, with shares held by the institutions and hedges looks like it might be higher than the float. That is unless the hedge funds that own the majority of the company are lending out their shares to short sellers.
You understand how that report works right?
They are adding institutions based on quarterly 13 disclosures so unless it's 5% or more the position is from last year.
You should crunch the numbers because it looks like the hedge funds that own hycroft are lending their shares to shorts.
If they honor the warrant agreement the strike price would be less than half that. We were in the money on these offerings and they denied us our cashless exercise so the only way to fix it is cash. Alotta cash..so good thing they raised money.
Pretty sure the "new technology" cant be scaled. On one hand they are wasting money on such a hodge podge gamble on the other keeping the gold and silver in the ground while it rises has been better than mining it and depleting ounces at 1200 gold and 1700 silver.
We can make the decision of whether or not we build a mill when we bankrupt Mudrick and take possession of Hycroft.
Yeah they know it's a silver/gold mine that trades on the Nasdaq.
There was a secondary offering and alot of these are funds that participated filing EOY 13fs.
Thanks...
Looked this over and compared the initial reports...
Sprott, Goldman were sellers
Looks like index funds were the buyers..
Maybe another undisclosed buyer? I don't know
Let me help
The movie the big short was about Paulsen. He held shares pre bankruptcy. More recently he purchased stock/warrants in the secondary offering. The reports are now he opened a position in the warrants last quarter but those just may be unreported warrants from the bankruptcy shares.