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HYMC and HYMCZ demystified?

Jodster

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Hey gang, There's an interesting story developing regarding Hycroft Mining, formerly Allied Nevada. I'm going to try and make this as simple as possible and I apologize for any errors. The reason for this post is to get opinions on the technical side of things.

I'm barely able to execute a trailing stop limit on the best of days, so when you guys talk about "puts" and "strikes" and condors of all kinds, I know I'm out of my league.

However I find the story of HYMCZ rather fascinating and want to know if the theory that a $0.25 warrant can achieve $45/ea. has any validity.
Also, since we now have Sprott, AMC and others showing strong interest in this corporation, we are beyond the rumor mill stage.

Below are some articles and links for you to review. Enjoy and appreciate your feedback.

Summary from SeekingAlpha:
 

Jodster

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"Updates" page on Google Drive. TONS of information here!

 

Goldhedge

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I'm no chartist, but 'something' is going on...


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Jodster

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In the ground, they have $30 billion in gold, $15 Billion in silver, plus horrible management and Meme stock appeal. In a year this conversation will be much different. I'm still puzzled why the warrants are not seen as a 100-bagger? The technicals say they are.
 

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FROM MY SOURCE REPRESENTING HYMCZ SHARE HOLDERS:


Update 1:

I have just finished drafting up a very important letter that I have been working on and just sent it to AMC's CEO Adam Aron email, titled:

Hycroft Suspected Of Deliberately Withholding Information From AMC CEO Adam Aron

https://bit.ly/March-31-2022-Letter-To-AMC-CEO-Adam-Aron

Please read the above letter in its entirety. It is of EXTREME IMPORTANCE to every single one of us in our group.

Even though we are the good guys in this letter, it is a very very bad letter for all HYMC investors and AMC investors but it does offer a simple solution that costs nothing to Hycroft. You will all see what I mean when you read the letter.

If possible we would like to send this letter not only to the CEO but also to some other corporate management located here to make sure that it gets to him: https://investor.amctheatres.com/governance/senior-officers-board-of-directors/default.aspx

I will try to find the email addresses of several other AMC management personnel and send a copy of the letter to them as well via email.

The result of the letter is to have a soon renegotiation of our HYMCZ contract so that investors of Hycroft, and AMC do not lose a substantial part of their investments due to our efforts as we continue to pursue relief for our group. The solution to this is to provide HYMCZ holders with a favorable warrant contract similar to that of both AMC and Eric Sprott. Please see the letter for details.

Also, if anyone in our group knows Mr. Aron personally, or anyone who knows someone who knows him, please send this letter directly to them and ask them to please get this letter to Mr. Aron. Also, if anyone knows someone who is employed by AMC and can bring this letter to any member of their corporate staff, please send this letter to them as well.

Update 2:

Hycroft just announced that they want to extend the total number of shares that they could issue from 400,000,000 to 1.4 billion. This does not mean that they will issue these shares, it just means that they will be able to. As of right now this has no effect on us, but in the future as long as anti dilution is handled fairly, it could potentially increase the number of shares we receive per warrant held.

https://ih.advfn.com/stock-market/NASDAQ/hycroft-mining-HYMC/stock-news/87704936/information-statement-all-other-definitive-def-1?xref=newsalert

As I mentioned in the last email, things seem to be starting to heat up so please keep an eye on the updates page to make sure that you never miss an update.

Link to updates page:

https://bit.ly/HYMCZ-Warrants-Updates-Page

Talk soon!

 

Jodster

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MOST RECENT UPDATE AS OF APRIL 04:

Hey everyone,

Jordan here with a quick update about the letter that was sent out to CEO Adam Aron.

The CEO of AMC has already replied! Please see the following link:

As you read his letter, notice that he is not even aware that our group has a continuing interest in Hycroft! This means that Hycroft did not share this incredibly important piece of information with him even though it affects his investment! Notice also that he realizes that the information in our letter is very important in that he expresses his interest to potentially devote time to it if we have our lawyers contact his lawyers.

This would make for a great news article, "CEO AMC Adam Aron A Deer In Headlights As He Discovers HYMCZ Holders Hold Larger Than Expected Stake In Hycroft". Imagine what he now thinks about Hycroft management as he discovers that Hycroft did not disclose this information to him. The new Hycroft management is either completely oblivious to our group, or they simply deliberately kept this information from him.

His reply is located here:

https://docs.google.com/document/d/1xf1AxBdMc5HtPgy5JgMJI-3H3dJhg9_8zPtIXKlKwMQ/edit?usp=sharing

I have since replied to him. My reply is located at the following link:

https://docs.google.com/document/d/1_PIK5XSMcU2R3_ARi4MeQJtmdG2b2OxFmVzzmzy42S0/edit?usp=sharing

I will keep everyone posted as soon as he replies back.

Either way, I will be sending out another email update once I hear back from AMC CEO Adam Aron.

Please keep an eye out for this email and if you don't receive an email within a week, please check the updates page. I'm also in the process of preparing an email to hopefully open up communication between our group, Hycroft, AMC, and Eric Sprott so that we can solicit a reply directly from Hycroft as to what exactly they plan on doing to resolve the issue explained in detail in the original letter that was sent to Mr. Aron.

Link to updates page:
https://bit.ly/HYMCZ-Warrants-Updates-Page
 

Voodoo

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MOST RECENT UPDATE AS OF APRIL 04:

Hey everyone,

Jordan here with a quick update about the letter that was sent out to CEO Adam Aron.

The CEO of AMC has already replied! Please see the following link:

As you read his letter, notice that he is not even aware that our group has a continuing interest in Hycroft! This means that Hycroft did not share this incredibly important piece of information with him even though it affects his investment! Notice also that he realizes that the information in our letter is very important in that he expresses his interest to potentially devote time to it if we have our lawyers contact his lawyers.

This would make for a great news article, "CEO AMC Adam Aron A Deer In Headlights As He Discovers HYMCZ Holders Hold Larger Than Expected Stake In Hycroft". Imagine what he now thinks about Hycroft management as he discovers that Hycroft did not disclose this information to him. The new Hycroft management is either completely oblivious to our group, or they simply deliberately kept this information from him.

His reply is located here:

https://docs.google.com/document/d/1xf1AxBdMc5HtPgy5JgMJI-3H3dJhg9_8zPtIXKlKwMQ/edit?usp=sharing

I have since replied to him. My reply is located at the following link:

https://docs.google.com/document/d/1_PIK5XSMcU2R3_ARi4MeQJtmdG2b2OxFmVzzmzy42S0/edit?usp=sharing

I will keep everyone posted as soon as he replies back.

Either way, I will be sending out another email update once I hear back from AMC CEO Adam Aron.

Please keep an eye out for this email and if you don't receive an email within a week, please check the updates page. I'm also in the process of preparing an email to hopefully open up communication between our group, Hycroft, AMC, and Eric Sprott so that we can solicit a reply directly from Hycroft as to what exactly they plan on doing to resolve the issue explained in detail in the original letter that was sent to Mr. Aron.

Link to updates page:
https://bit.ly/HYMCZ-Warrants-Updates-Page

I don't know what happened before but I'm guessing the lawsuit should be against the previous company and management. I have no idea on the validity of the claims but they seem to have a very low probability of success. Usually if they went through bankruptcy, etc. all claims are pretty much worthless.
 

Jodster

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I don't know what happened before but I'm guessing the lawsuit should be against the previous company and management. I have no idea on the validity of the claims but they seem to have a very low probability of success. Usually if they went through bankruptcy, etc. all claims are pretty much worthless.
My understanding is that the warrants can still be exercised. There is a loose organization of warrant holders that have retained legal counsel and provided the SEC with hundreds of pages of evidence validating their position. The shenanigans make for quite the drama!
 

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Jodster

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What would happen if the mine were almost insolvent and was later taken over by a giant like Barrack? Wouldn't the new owner still have to honour the existing legal agreements?
 

Voodoo

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My understanding is that the warrants can still be exercised. There is a loose organization of warrant holders that have retained legal counsel and provided the SEC with hundreds of pages of evidence validating their position. The shenanigans make for quite the drama!

That was poorly written and researched IMO. I bought a few shares but I'm betting that Eric Sprott has done his DD.

Going public as a SPAC is not that strange and was VERY popular the last few years. And they ALL issued warrants. Now, a lot of SPAC's have had some problems but a lot is tied to the SEC changing the rules on the warrants. This reads like a whole lot of nothing but sour grapes.
 

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What would happen if the mine were almost insolvent and was later taken over by a giant like Barrack? Wouldn't the new owner still have to honour the existing legal agreements?

No, that's why companies go through bankruptcy. All of those things get negotiated and then finally approved by a judge. Assets get distributed to debt holders first... Stock holders usually end up with nothing. Warrant holders have the option to buy stock which is worthless, so, worse than worthless.
 

Jodster

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No, that's why companies go through bankruptcy. All of those things get negotiated and then finally approved by a judge. Assets get distributed to debt holders first... Stock holders usually end up with nothing. Warrant holders have the option to buy stock which is worthless, so, worse than worthless.
You mean I don't even get part of a goldmine? I was hoping Irons could come and help me stake out a claim! :p
 

Voodoo

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You mean I don't even get part of a goldmine? I was hoping Irons could come and help me stake out a claim! :p

I'm guessing you guys would have more value going out and staking some new ground than buying those warrants.
 

Jodster

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I'm guessing you guys would have more value going out and staking some new ground than buying those warrants.
Well I'm sitting on an assload of those warrants. So Hope is all I've got right now.
Can you think of any way this could ACTUALLY work? :beer:
 

Voodoo

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Well I'm sitting on an assload of those warrants. So Hope is all I've got right now.
Can you think of any way this could ACTUALLY work? :beer:

Well there could always be a chance of actually succeeding in court. But the price and history shows you that is not a good chance. IMO, just switch the investment over to HYMC shares, if you want to own this new company at this time.
 

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Anti-dilution order was in place before the Mudrick "merger":


Page 14/67
(jjj) “Warrant Share Number” shall mean, on any Exercise Date, the product of (i) the Total Share Number on such Exercise
Date multiplied by (ii) the quotient of (A) 17.5 divided by (B) 82.5.
Based on above Court Order - Number of Shares to be issues to ANV Shareholders are: As of March 25th 2022, 41, 746, 188 HYMC to be issued against 12,619,334 ANV Warrants.

ANV Shareholders Rights to be preserved:

ANV Shareholders have been suffering since 12 years with hide and seek game between short sellers and company executives..

We preserve right of the court order dated October 2015: Non-Diluted 17.5% of the company.

Article V of the warrant agreement calls for certain mechanical adjustments to be made whenever stock is issued to protect warrant holders from dilution. There are multiple different triggering events which include amongst other things, adjustments to the "cheap stock factor". When the company issues shares either below market value or to a restricted person ie Mudrick or any of the hedge funds that owned hycroft when it was private.

Again these adjustments are to protect warrant holders from dilution and ensure they are entitled to their 17.5% of the company as ordered by the bankruptcy court. These anti dilution projections were ignored when Mudrick merged the private company he owned with the SPAC he was running. They purposefully ignored them because dilution is the name of the game they play.