Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

Hedge fund buying the old common shares?

What would a hedge fund do with the old shares? The conversion in warrants appear to have been a disaster where even if one bought shares just prior to the effective date, the trade lost over 50% in one day.

None of the calculations or estimates I have presented showed any value to the old common shares, and all showed large losses.

What would a hedge fund do with warrants in a company where the stock does not trade? Even if they converted the warrants into shares of NewCo common shares, there is no way to get the money out of such a trade except through a private sale.

The monthly operating reports showed the company needing all kinds of cash to be 'shoveled' into the company to cover the massive losses that it was suffering; and even after all of the money shoveled into the company, it looks like the company only limped out of Chapter 11 with $25 million in cash.

If gold prices remain under $1,200/oz, I would not be surprised to see the company forced to mothball operations in order to have a chance to survive.

Even after the Chapter 11 plan, I do not think the secured debt is 'ok' and may still suffer large losses gold stays low in price.

I think there is even a possibility that the reformed company ends up selling off its properties in an effort to stay in business.

Louis J. Desy Jr.