Market Manipulation
As defined by the Canadian Securities Administrators in their 2009 Enforcement Report
“market manipulation involves efforts to artificially increase or decrease a company’s share price. Examples of market manipulation include pump and dump schemes, high closing activities and volume manipulation.”
Other investment and stock market related fraud
Please see Canadian Securities Administrators Avoiding Fraud web page for more information on these and other types of investment and stock market fraud:
- Affinity Fraud
- Boiler Rooms
- Pump and Dump
- Exempt Securities Scams
- Forex Scam
- Investment seminar scam
- Offshore investment scam
- Retirement account scam
- Spam e-mail
Protect Yourself
Want more information? Inform yourself on your money and your investments. The Canadian Securities Administrators and their provincial and territorial partners have put together a wide range of investor tools, including the "Protect your money: Avoiding frauds and scams" guide you can access and use free of charge by following this link: CSA Investor Tools.
You can also visit the federal Competition Bureau's Fraud Prevention web site for useful initiatives, resources and other important information.
What do you do if you feel you have been a victim of stock market or securities fraud or scam? What should you do? Who should you contact? Follow this link on reporting scams and frauds: Reporting Scams and Frauds.
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28 comments:
Nice thought, but the burden of proof is going to fall on the accuser. The reg agency will only act if you do their job for them such that acting on the issue is a slam dunk and it takes minimal effort. I am sure they get thousands of claims of fraud from retail shareholders everyday and probably look into less than 1% and act on an even lower percentage.
The best way to act in one's self interest here would be to organize a block to exercise dissent rights and force WTG's hand.
On the topic of share price manipulation...
WTG did a private placement that closed in Feb. 2011. The private placement shares are locked up until June 5, 2011. Because of the lock up, trading activity is minimal (hence, the share price is able to stay inflated).
I would bet my left nut that the Russians want to get the deal done before then... otherwise, WTG's share price would plunge before the special meeting, exposing the Russians scheme and causing CMM shareholders to vote NO.
If we are able to delay the special meeting date, this would deal a huge blow to their plans. Additionally, because they are working on such a tight time frame, I think the likelihood of them sweetening the deal to make things work is pretty high.
Cheers,
Uall
Interesting point about the WTG shares unleashed on the market June 5. That will make for some explosive trading for sure.
The special meeting is in May, is that when the actual vote happens?
Hi Uall,
Are you sure about the lock up, and also about the June 5th date?
I have been looking for lock up (4 month freeze) info for a while now, but I have been unable to find anything.
They had a small financing in the September/October timeframe that had a 4 month no trade period, but that was tiny.
I didn`t see any freeze note on their bigger $24.8 million financing. Given that there has been virtually nothing trading on the market for WTG since inception early stages (in my view), I came to the conclusion (as I couldn`t find a 4 month freeze clause) that the $24.8 million financing was to friends and family, or perhaps the same character types (if you know what I mean - nudge nudge, wink wink).
Here was the November 11th NR, to complete the deal:
``White Tiger Gold Ltd. has raised C$24.8 million in equity Road Town, Tortola, British Virgin Islands – December 29, 2010 – Further to its press release of November 11, 2010, White Tiger Gold Ltd. (“White Tiger Gold” or the “Company”) (formerly, SL Resources Inc.) is pleased to announce that it has completed the first tranche of a non-brokered offering of subscription receipts of the Company (each, a “Subscription Receipt”) pursuant to which 24,830,210 Subscription Receipts were sold at a subscription price of C$1.00 per Subscription Receipt for aggregate gross proceeds of C$24,830,210. In accordance with its terms, each Subscription Receipt has been automatically exchanged for one common share of the Company (without payment of any additional consideration), thus all 24,830,210 outstanding Subscription Receipts have been exchanged for 24,830,210 common shares of White Tiger Gold.
As of the date hereof, and taking into account the shares referred to above, there are 114,630,210 common shares of the Company issued and outstanding.
No stock exchange, securities commission or other regulatory authority has reviewed or approved the contents of this press release.``
Now sometimes ``complete`` is used with a note to say that it needs regulatory approval. Then, later, another NR is issued once it receives regulatory approval and gets officially closed off. They usually have to publish the terms via NR (ie. if there is a 4 month trading freeze). At least that is the way it is with the Venture Exchange (don`t know if the main TSX board has different rules).
There doesn`t seem to be anything issued on SEDAR after this point, with regards to this financing.
As such, I don`t see any 4 month freeze type situation (unless it is buried in some unusual document somewhere).
Let me know what you find.
For now, I will continue to believe that there is no one else out there (either officially or unofficially) that holds any meaningful WTG shares outside of Finskiy`s influence.
I (personally) don`t view WTG currently as a freely traded market investment (that is my personal opinion and viewpoint). I see WTG`s market share price as being anything they fictitiously want it to be for now (until it gets consolidated with CMM shares and then all hell breaks lose, IMO) - until then (it`s all the same to me $5, $10, $15, $20? Again, it is only my personal view (and I really don`t mean to be harsh), but I am struggling to see a difference with the WTG share price and monopoly money.
Again, let me know what you find.
It's possible that all the PP subscribers were friends and family. However, all it takes is one bad apple. These guys are sitting on huge gains... bought in at $0.30 and got free warrants.
Cheers,
Uall
That would be December 29th as complete date and November 11th as original announcement date.
Hey Production05,
here it is:
http://www.whitetigermining.com/files/news_releases-2011-02-07.php
"White Tiger Mining Corp. (the “Company” or “White Tiger”) is pleased to announce that further to its news release of December 1, 2010, the Company has closed its non-brokered private placement (the “Private Placement”). The Company has raised $1,362,350 by the issuance of 4,541,165 units (the “Units”) at a price of $0.30 per Unit.
All of the securities issued pursuant to the Private Placement are subject to a hold period expiring on June 5, 2011."
Cheers,
Uall
hmmm... my post keeps getting deleted. Big brother?
anyway, here's the link:
http://www.whitetigermining.com/files/news_releases-2011-02-07.php
Wow... never mind. I screwed up. The website is White Tiger Mining... not White Tiger Gold. Different companies... super confusing.
Uall
Paper tiger, I think.
With so many CMM investors upset with the proposed deal with WTG, why arn't calls being made to BlairFranklin Capital Partners Inc. (an independent investment bank that advices public and private cos.) who is advicing Century on this deal. At least those very upset shareholders can scream at them about how rotten and totally underhanded this deal is and the fact that it does not make any financial sense for Century to accept the deal.
I am of the same view as you P5. The price is completely manipulated through in concert activities. As far as I can see there are only 4.8 million shares which might be traded and if these are all held by friendly hands i.e. associates or persons linked in some way, persons who are part of the plan, why would any shares be traded. Sorry, just enough trades to establish the monopoly money price.
Once the paper exchange is done in addition to the 114,630,210 shares a further, if warrants and options were all exercised, 188,384,739 will have been issued and those not yet held by the in crowd will start coming onto the market. Likely there may be no new buyers, other than the in crowd, when the WTG new shares start being traded. Easy cheap pickings. However it seems to me that the controllers will want the WTG paper to revalue relatively quickly as they will want to use their paper for future acquisitions and a high capitalization for fund raising purposes. If you have the stomach to stay the full ride you could get a reasonable price for your WTG shares.
If anything naughty has been done I’m merely suggesting this is where the nasty smell is coming from for my nose.
Manipulation takes place when a person who has more money than another person can drive the price of a product up or down, and it's easy to manipulate a market wherein all you need is fiat currency. - ERIC SPROTT
http://www.theaureport.com/pub/na/8762
Hi Prod05
I am sure U have been very busy lately. Am following this CMM/WTG issue intensely n I want to let U know we are waiting for the finalised defence you n all the knowledgeable outstanding investors plan out. Collectively we have 590,000 CMM shares n we have not sold any. Appretiate what U had done n are doing n our thanks to all contributing members too. Cheers!
80,000 shares -- excited to vote a meager NO
I never imagined that when I reopened the blog to reader comments that we'd get so many in one day. I've barely had time to read them all. Thank-you all for providing your input and especially to Peachy for the very detailed summary of the conference call. I was unable to listen to it personally.
To Ron S, please send me your audio file and I'll see if I can make it available to all visitors to the blog.
I certainly support and applaud any collective action to fight this unfair Russian hijacking of our company, but I just don't have the time or experience to take any kind of leading role. I agree with comments that we should solicit professional help and be prepared to contribute financially to fight for our rights.
It saddens me to see so many shareholders sell their shares at these low prices because of the fear of having to trade 2.5 shares of CMM for a share of WTG that is probably not worth a single share of CMM.
If anyone wants to become a blog member so that they can have much better posting tools, send me an email at centurycarib@gmail.com.
It is difficult to post things like links in a comment without using HTML tags. You can also edit posts, but not comments.
I am for organising a block to exercise dissent rights and force WTG's hands. Such a block of 20.4million shares does not seem so daunting (408 million x 0.05=20.4 million). If we can do that, we can go for the jagular. Beside the big block held by Mrs P Kent, what about the other big blocks?. Rem reading one recent post mentioning a 25 million block in Switzerland n a 10 million block in the Sudbury/Galgary area
I think we can definitively say that the takeover process really began when Finiskiy transferred 25 million shares and 25.5 million warrants out of his account on February 2- probably to someone who is now counted as a minority shareholder. I'd assume the waarants have to be converted into shares in order to vote the shares at which time the company would pick up $7.65 million in cash.
The weighted average share price for the past 30 days is 62.3 cents. A weighted average share price of 60 cents for 30 days can trigger the forced exercise of the warrants with 60 days notice although I can't imagine management forcing Finskiy to do anything.
Also the warrants expire on June 24, 2011 so either way, we will be getting about $8 million from exercise of warrants (counting Finiskiy's remaining warrants) by June 24.
Just thinking outside the BOX.
If we try and justify WTG’s share price ($3.50 to $4.50 say) then by using the same means of how they came up with that price (justification), CMM’s share price should have been sitting comfortably at $9.00 IMHO. Correct me if I am wrong, but this may be the primary reason for this merger to ensure WTG’s share price stays as high as possible hence the stock price(s) manipulation. But also to try and pocket our shares by giving us peanuts.
Globex Mining Enterprises Inc. (Public, TSE:GMX) may be a company with deep pockets looking for a push in the right direction. It's current stock price sits at $2.36 with 47.83M Market Cap & 20.27M shares. Correct me if I am wrong, but they can use more shares right? GMX may be a company very interested in CMM.
Any thoughts?
Either way, we will be getting about $8 million from exercise of warrants (counting Finiskiy's remaining warrants) by June 24.
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Oh but the company is in dire financial straights according to Mr Major! LMAO!
This makes that ridiculous bridge loan even more pathetic...so many different options and managment picks the worst one.
Wingfong, I'm confused. Didn't the NR say only 66% is required to pass, so wouldn't that mean 34% has to vote NO in order to stop this thing? 408 x 34% = 138M shares
Depending what PK signed when she left she could be one of the lead (resource people) for push-back including data for a white knight bid. No opening of data books required.
Danger that I see in action against insiders is the damage they can do
(evidence what has happened in one month) But no matter what happens in the next crucial month it will never be the same. Damage to share price. No new resource estimates. Very damaging NR. If it starts to go badly for THEM then more bad NR's CTO's.
Peter
Anonymous .. go back to the NR. Read under the sub section- Closing Of The Business Combination Is Subject To Certain Conditions Including:-
..Clause 9 .. "Century shareholders holding no more than 5% of the outstanding century shares having exercised dissent rights" n from this I deduce the 20.4 million shares requirement (408 million outstanding shares x 0.05=20.4 million) Hope I do not make a mistake. Cheers!
Anonymous Do refer to what Blizzy said about dissident rights in the post " To Contact Blozzy" March 15 2011. He is collecting commitments of those who wish to exercise dissident rights.
The offer is a sham when you consider Lamaque is on track for 70,000 ounces this year and San Juan another 20,000 ounces. Even if a small PP or loan is needed. 90,0000 ounces x $1,400 = $126,000,000 gross is a lot to give away for a pile of over inflated paper.
Vote NO to this.......
Holding a piddling 4200 shs (blush) but ready to go along with the NO crowd. And to put up a bit of cash if needed.
A thousand more like me and we'd be getting right persuasive...
My 18k is right beside your 4200. They too vote NO and/or a bid for cash.
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