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All.. please review my posts from yesterday explaining how HYMC is not honoring the mechanical adjustments they assumed pursuant to the Warrant Agreement. These adjustments are outlined in Article V of the Warrant Agreement and explicitly stated we are protected from dilution from shares issued to restricted persons and their affliates.
There is also a link if you google search: SEC complaint. Will take five minutes to fill out.
Yes but...
The exchange of hyct to HYMC is only a small part of the deal covering 17 million shares. We get antidilution on the remaining 33 million.
Thats only one place we need to focus our intentions.
The value attributed to the assets was low because the company sold it to themselves through an illegal backstop agreement. This opens up the door for punitive damages and possibly criminal prosecution. It's an election year too.
Don't you mean below?
Mudrick is the sponsor the "initial subscribers" were all part of the backstop. We get mechanical adjustments for every transaction including your warrants assuming they don't expire worthless.
Just called my broker there is a delay in the distribution of HYMC to shareholders of Hycroft. Explains the drop in HYMC and HYMCW. Wonder what the delay is and if it's related to Mudrick's latest disclosure. Let me not speculate though it's probably nothing. Good luck.
They aren't honoring the mechanical adjustments they assumed when they assumed the warrant agreement.
(o) In the event that at any time, as a result of any adjustment made pursuant to
Section 5.1(d), each Holder thereafter shall become entitled to receive any securities or property other
than New Common Stock, thereafter the number of such other securities or property so receivable upon
exercise of any Warrant and the Exercise Price shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the New
Common Stock contained in this Section 5.1 and this Agreement shall be amended so to provide.
Restricted Person
(aaa) “Restricted Person” shall mean (i) a holder of a Note as of immediately prior to
the Effective Date (for so long as such Person continues to hold any equity securities or debt securities of
the Reorganized Debtors), (ii) an Affiliate of any holder of a Note as of immediately prior to the Effective
Date or of the Reorganized Debtors; provided, however, that any Person that acquires stock, Options or
Convertible Securities at different times as part of a series of related transactions shall not be deemed an
Affiliate of the Reorganized Debtors for purposes of any issuance of such stock, Options or Convertible
Securities if such Person was not an Affiliate of the Reorganized Debtors immediately prior to the first
transaction in such series of related transactions, and (iii) an employee, officer or director of any holder of
a Note as of immediately prior to the Effective Date or of the Reorganized Debtors.
ARTICLE V
ADJUSTMENT OF WARRANT SHARES AND
OF EXERCISE PRICE
(c) (i) In the event the Company at any time or from time to time after the
Effective Date shall issue Additional Shares of New Common Stock (including Additional Shares of New
Common Stock deemed to be issued pursuant to Section 5.1(c)(iv)) without consideration or for
consideration per share less than the Fair Market Value of the New Common Stock on the date of, and
immediately prior to, such issuance or, if such Additional Shares of New Common Stock are issued (or,
pursuant to Section 5.1(c)(iv), deemed to be issued) to a Restricted Person, the Exercise Price in effect on
the date of, and immediately prior to, such issuance, then the Cheap Stock Factor shall be reduced,
concurrently with such issuance, by multiplying (x) the Cheap Stock Factor then in effect by (y) a
fraction, (A) the numerator of which shall be the sum of (I) the number of shares of New Common Stock
outstanding immediately prior to such issuance plus (II) the number of shares of New Common Stock
which the aggregate consideration received by or payable to the Company for the total number of
Additional Shares of New Common Stock so issued would purchase at the Fair Market Value of the New
Common Stock on the date of, and immediately prior to, such issuance or, if such Additional Shares of
New Common Stock are issued (or, pursuant to Section 5.1(c)(iv), deemed to be issued) to a Restricted
Person, the Exercise Price in effect on the date of, and immediately prior to, such issuance, and (B) the
denominator of which shall be the sum of (I) number of shares of New Common Stock outstanding
immediately prior to such issuance plus (II) the number of Additional Shares of New Common Stock so
issued. For purposes of the above calculation, the number of shares of New Common Stock outstanding
immediately prior to such issuance shall be calculated on a fully diluted basis, as if all outstanding
Convertible Securities had been fully converted into shares of New Common Stock and any outstanding
Options had been fully exercised (and the resulting securities fully converted into shares of New Common
Stock, if so convertible) as of such date; provided, that any stock, Convertible Securities or Options
owned or held by or for the account of the Company or any of its direct or indirect subsidiaries shall not
be included in such calculation.
Amen
And you see how they got the state to move on charges.
Maybe we should move on these guys
"as this is now a publicly traded company with an oversight of SEC."
You're finally catching on
Documents you previously quoted were drafted up by Mudrick's lawyers?
Such a great deal that his lawyers forgot to advice him to ..
Who honestly believes gold went from 1100 to 1700 and they would of been facing pending bankruptcy if the hedge funds complied with their fiduciary duties.
MUDS treasury was emptied by redemptions how did MUDS recapitlize the company and save them from bankruptcy? By a backstop agreement that's about to come under major scrutiny.
Cold dish you probably should have taken profits on your MUDSW. Hyct holders haven't received a distribution the deal could face a regulatory snag.
In life you give people the opportunity to right their wrongs. When they double down they break bad and dig their own graves.
The senior executive bonuses attached to this deal are double the value attributed to what the initial 3 million shareholders are getting. The hedge funds had a fiduciary duty to maximize shareholder value but instead treated the company like their own personal atm running it up with debt they held then selling it to themselves for nothing. Judges might not understand all the details but as a practical matter they'll see this scam of a merger for what it is.
This whole deal is an obvious POS with a fatal flaw that will be outlined in a forthcoming class action. Let us hope justice is a nice cold dish. They already got caught trying to disregard our warrannts and think the directors insurance policy imendifies the board from personal liability but it doesn't cover the kind of fraud perpetrated.
Cold world cold dish.
Yes but someone is giving her the numbers. She is a parrot that told us to wait for the S-4 while they planned on initially never assuming the warrant obligation.
Now they are trying to circumvent the antidilution.
You can't make 60x on HYMCW it's not possible unless you bought in at .10.
And how about that JUUL investment?
Mudrick has close to 30% of its total assets invested in e-cigarette maker NJOY Holdings, according to a report from Bloomberg.
Jason's career is over if this deal falls through. Wouldn't be the first victim of hubris.
His lawyers tried to submit a plan where they didn't assume the warrants.They got caught and had to amend.
Now they aren't honoring the antidilution. Just looks really bad dude. Now I not the time to fuck over the little guy in the midst of a pandemic no less. Mudrick is a loser that needs this deal to save his fund after getting killed on his juul investment.
And his lawyers structured a deal with a fatal flaw that will come back to haunt them.
Mudrick = future defendant
The political climate is perfect. People are outraged at bankers constantly screwing over the little man.
And now we have a poster child.
They are like a thief in the night.
Is the market cap/share float the same as MUDS by any chance?
Do you think they aren't going forward with the exchange or backstop agreements exactly how the press release and all the SEC filings? Now we go by the trading platforms market caps which are historically inaccurate?
It's like this board is purposefully riddled with misinformation.
You have no clue whatsoever..
The press release says they have over 50 million outstanding shares.
Did any of you even read the deal?
HYMCW is the old MUDSW...
Nobody even pays attention or has a clue because you guys didn't read the deal.
Speaking hypothetically,
If the SEC breaks up the deal and axes the backstop how much is left in MUDS treasury?
They can extend the charter but they already had a ton of redemptions and will get even more when they seek an extension.
Tell us... why you are here rooting against the interests of legacy Allied Nevada shareholders and gloating about taking the otherside of the transaction. When the deal was announced you were happily telling us our warrants were worthless.
You are not one of us and should wait for the fat lady to sing because karma is a cold dish.
If the deal falls through MUDS has a redemption trigger and its below $11.50.
MUDS has until August to close on an acquisition and still needs regulatory approval.
Deal probably goes through but it's no guarantee.
Hycroft board is very motivated but why wasn't there an auction?
Just saying there is risk in MUDS because if this deal falls through the shares get redeemed and warrants dissolved.
Good luck.
What happens to your warrants if regulators or the Court tear this deal up?
Good stuff. Gold was much lower in 2018 pretty obvious what this is and why they never disclosed the feasibility studies to the market.
Now think about this comimg out of bankruptcy they had 3 million shares outstanding and approximate 200 million in debt. The hedge funds saddled the company with so much of their own debt and at high interest the resulting merger only provides for a 1$ share recovery for shareholders since currently there are still only 3 million shares.
Imagine all the other options the company had to maximize shareholder value. The initial equity pool is receiving only 3 million dollars. Thats half of the golden parachutes for Jones and Buffington and a fraction of the fees they incurred to push this through. They could of streamed gold to pay off the debt but instead only streamed enough to pay themselves and the streaming deal is with an affiliate of a board member.
Its ashame people can write message boards but not respond to people that worked on this for years.
Approximately 12.6 m warrants was 17.5% of the company. The additional shares/warrants are from antidilution triggers from the warrants.
Yeah wait n see...
All that does is make the attorneys money.
Isn't this what the disclosure process in a merger is for?
There were a ton of redemptions so the stock was separated from the warrants.
Those calculations aren't even in the stratosphere. Not even close.
It says plain as day there will be equitable adjustments not to mention just common sense that the strike will change due to decreased share float. There isn't adequate disclosure right now in the SEC documents but i can tell you guys are oblivious to what they are even trying to do.
Why does everyone call me Brian? You guys are so far off base on everything.
Nope..
Nothing but disinformation on this board and deleting of relevant posts.
One with a paper shredder
Don't know...
There are alot of ways for this to go.
Yeah that's not how things work.
Its not a traditional IPO like you think they are just merging HYCTW with the already publicly traded MUDS. The registration is just for purchase shares.
MUDS already IPOed at 10$ like every other blank check shell they don't need to raise capital. Moreover, the backstop is just a backdoor gift back to the initial subscribers.
If it wasn't enough to try to screw us over once I'm pretty sure they know if they try to double dip we can open up the books and claw back some those ill gotten gains under bad faith covenants.
Nothing like a cold dish of populism served in an economic depression. The climate of the country has changed so greedy little Wall Street bankers are back on the menu. Been gearing up for the final act to get us the justice we deserve.
America is dying to make an example out of greedy criminals that saddle a company with debt and sell it to themselves in a special shareholder meeting they set up in the midst of a pandemic. Its an election year too. Bet these judges are ready to make an example out of greedy little pigs.
They might want to tread lightly.
There are all kinds of laws against selling a company to yourself.
The DIP financers are the 1.5/1 25 note holders/ PIPE backstop/Hyct common holders...
It's all the same group of funds and this is fraud. Go tell your boss.
17.5% with the same agreement. Cashless exercise, antidilution... Etc
Similar in substance and form.