Why no flood of WTG shares?
posted on
May 02, 2011 10:20AM
It was my understanding that 20+ milllion WTG shares became unlocked today. One presumes this didn't happen as only 1000 shares have traded today. Does anyone have information as to this situation?
As per a previous post of mine:
According to quotes within the linked article the WTG shares become unlocked April 30. Next trading day is May 2.
This is the only real source that I could find regarding the unlocking event.
Selected extracts:
"Cowley explained that when WTG’s shares were offered for sale in their debut listing on December 31 on the Toronto exchange, “a very small amount of retail shares” were sold. There was no prospectus for the sale, he added, “because it was a private placement”. What he means is that between converting SL Resources and Dalsvetmet into WTG, and the share sale of December 31, Finsky arranged for WTG to sell 24.8 million shares for a total of $24.8 million to what a company release called “various international investors”.
Wth this sale of 22% of the total issue, a share price was fixed of $1. Since the company has reported that Finsky owned 85 million of the shares (74%), that appears to have left just 4 million for sale on the stock exchange – just 4%. Who ran up the share price to buy these shares, Cowley was asked . He said he doesn’t know; the company has announced it knows of no material circumstances warranting the share price movement. Cowley acknowledged only that Finsky is the controlling shareholder, and that the investors in the private placement “are locked in until April 30.”"
http://johnhelmer.net/?p=5052