Hycroft Mining Holding Corp (HYMC)

[webpence]

Eric Sprott's 2176423 Ontario Ltd sold 5,000,000 shares...

To buy warrants!

Here is the math.

Held 23,408,240 then sold, 5,000,000
=18,408,240

Then exercises 911,760 warrants bringing his total back up to 19,320,000 shares. Why that number?

The warrant agreement will not allow him to exercise the warrants if it causes him to own more than 9.8% of HYMC upon exercising.

After selling the 5 million shares, 911,760 was basically the most he can exercise right now without being over 9.8% again.

Sounds complicated but here is the stipulation.

"Based on a Schedule 13D/A filed March 28, 2022, this includes 23,408,240 shares of Common Stock and 23,408,240 shares of Common Stock issuable upon exercise of a warrant held by 2176423 Ontario Ltd (?2176423 Ontario?), Eric Sprott controls 2176423 Ontario and has the power to direct the voting and disposition of Common Stock held by the entity through his ownership interests in 2176423 Ontario. The foregoing figure for beneficial ownership excludes 23,408,240 shares of Common Stock underlying warrants held by 2176423 Ontario that are not presently exercisable due to the effect of a beneficial ownership limitation blocker. "

So Eric Sprott is signalling his intent to exercise the warrants. But, in order to do that at this point, the company would have to have 427 million shares outstanding. That is what is meant by the ownership limitation blocker.

If all of the warrants are exercised, guess how many shares Hycroft has?

422,680,018

9.8% of that total is 41,422,641.764

41422641.764-23,408,240 = 18,014,401.764 or basically close as it gets to that 18,408,240 number he had before he started exercising the warrants here.