Investors were left with no choice but to compile a 29 chapter book exposing all to the SEC about management's vile step by step plan to wipe out shareholders.
NEW YORK, NEW YORK, UNITED STATES, September 30, 2020 /EINPresswire.com/ — On Monday, September 21, 2020 a complaint was received at the U.S. Securities and Exchange Commission revealing the mistreatment of Hycroft investors, specifically the Warrant Holders Group, HYCTW, currently HYMCZ, the previous Allied Nevada Gold Corp shareholders, claiming that among other wrongdoings, Hycroft was acting in bad faith when the company originally issued the approximately 12.7M Seller Warrants back in March of 2015 with Stephen M. Jones being responsible for the recent actions unjustly taken against warrant holders that if not restored will cause investors to lose over $608 million dollars.
The complaint states that the bankruptcy court documents allow warrant holders the right to purchase up to 17.5% of the new common stock with all anti-dilution protections and that Hycroft has not honored the contract. Included are a list of wrongdoings, of which #1 and #3 reveal that Hycroft, as of today, has allocated only 3.6%, just a tiny fraction of the total percentage granted by the bankruptcy proceedings.
The complaint goes on to state that when Hycroft filed for bankruptcy the company offered no relief to shareholders, attempting to wipe out investors' entire capital under the protections of the bankruptcy laws in one single blow, with investors having to fight back in order to receive warrants.
Warrant holders have been patiently waiting for five years to receive this relief and now that Hycroft has been acquired investors find management yet again dealing with them in bad faith.
Investors are now being told to hand over even more capital and to the same individuals responsible for extinguishing their prior shares, being told that in order to receive a single share investors must pay a blatantly outrageous strike price of $44.82 and give up 3.96 warrants, wiping out approximately 75% of all warrants and leaving investors over $30 out-of-the-money, effectively deeming their $608 million dollar investment worthless.
The total amount extra equates to a massive $143M (3,210,213 shares * 44.82 strike price = $143,881,746). For this same, $44.82, that gives investors the right to receive only one share, the public can currently purchase on the open market about four HYMC shares, an outright insult to investors.
It goes on to say that warrant holders should actually be receiving the majority of the stake in the company going forward, or at least a strike price of $0 and a warrant to share ratio of 1:1 because they are the class who bought all of its assets, including the mill components, with the last of the public offerings being announced just 3 months prior to the bankruptcy.
The complaint also explains several other shady dealings with it’s investors revealing that Hycroft management was against shareholders even prior to filing for bankruptcy as evidenced by writing off $430 million dollars in mill expansion impairments and then justifying this write off by claiming that the company was not going to expand the mine, when just 11 working days before announcing the bankruptcy, the company was found to apply for expansion permits to the Division of Environmental Protection, requiring that this $430 million dollar write-off be credited back to shareholders but never was.
Warrant holders can not help but question, “How is it possible that the group of investors who raised the most money would be allocated the fewest number of shares, just 3.2 million out of 87.5M total, with the highest strike price and be forced to give up the most warrants to receive a single share far out-of-the-money, when in comparison, new investors, who invested much less, received a much lower strike price, currently profitable, with a warrant to share conversion of 1:1?” The latter of which already had its assets previously paid for by the warrant holders who ironically currently hold worthless investments.
Will the newly appointed President, CEO & Director Diane R. Garrett, be the first president of Hycroft to finally do what is right without investors having to fight back or will she too follow in the footsteps of her predecessors?
The recently published 29 chapter book, outlined in Wrongdoing #4 of the SEC complaint, reveals, step by step, management’s entire plan from the beginning to wipe out shareholders, including the parties involved, why they specifically sought out Stephen Jones for CFO and not someone else, why bondholders came into the picture exactly when they did, and much more. This information is hardly believable but is all documented and date stamped for the reader to verify.
The information in this book proves, without a doubt, that the Hycroft mine belongs entirely to warrant holders and therefore, investors should be holding shares, not worthless warrants. The book, prepared specifically for the SEC, titled, “Management’s Step By Step Plan to Take the Hycroft Mine From Shareholders”, is now available for download from any of the following four servers:
The must see table of contents is found at the bottom of this news release.
If the company does not proactively resolve this matter in a timely manner, all HYCTW warrant holders, currently HYMCZ as of September, 1st, 2020, are encouraged to do what is necessary, using all evidence in the above mentioned book, to force Hycroft to provide relief to warrant holders, pursuing by law, including and up to criminal charges pressed against the board of directors, both current and former management, along with the Allied Nevada bondholders, the three offshore hedge funds, and the one limited partnership that used the illegal offering of 21.5 million shares to cover their short positions.
Warrant holders are requested to not accept any settlement offers and investors are requested to not purchase HYMC shares until this matter is resolved.
If you are a HYMCZ warrant holder you are encouraged to:
1. Join the bulk email list to receive the latest updates.
2. Add yourself to the current SEC complaint with 432 other investors.
Warrant Holders Group www.warrantholdersgroup.com
email us here
Source: EIN Presswire