Here’s a piece on VZLA that appeared in this weekend’s edition of The IKN Weekly, last Sunday evening. It’s also an example of why people who want a better picture of a company read the regulatory filings. It’s also a stock down 13% since Sunday.
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The Vizsla Resources (VZLA.v) 2q20 financials has a list
On
Friday evening, the latest hot Vancouver
silver promotion play, Vizsla Resources (VZLA.v), filed its annuals. Though
there was nothing out of place on the numbers, at least in my quick pass, the
list of Subsequent Events at the bottom of the financials makes for sobering
reading:
Friday evening, the latest hot Vancouver
silver promotion play, Vizsla Resources (VZLA.v), filed its annuals. Though
there was nothing out of place on the numbers, at least in my quick pass, the
list of Subsequent Events at the bottom of the financials makes for sobering
reading:
Please be clear, we knew
all these financings and options awards had happened, there’s nothing new or
secretive about any of the information above. What’s sobering is seeing all the
“brokerage friendly” deals stacked up one on another as it gives a real feeling
for how much cash has found its way into the Vancouver trough from this company (and in
short time too, they must love this one). Take for example VZLA’s attitude
toward incentive options, as they seem keen on skipping the “incentivising to
better things” part and going directly to reward. Apart from the obvious greedy
one, is there any reason why 390,000 of those options awarded on June 29th
should have vested immediately? Then on August 6th another 1.77m
options were granted, these at $2.15 and this time they go the whole hog and
they all vest immediately. Again, if the objective is to provide incentive the
question must be asked; Why should they vest immediately?
all these financings and options awards had happened, there’s nothing new or
secretive about any of the information above. What’s sobering is seeing all the
“brokerage friendly” deals stacked up one on another as it gives a real feeling
for how much cash has found its way into the Vancouver trough from this company (and in
short time too, they must love this one). Take for example VZLA’s attitude
toward incentive options, as they seem keen on skipping the “incentivising to
better things” part and going directly to reward. Apart from the obvious greedy
one, is there any reason why 390,000 of those options awarded on June 29th
should have vested immediately? Then on August 6th another 1.77m
options were granted, these at $2.15 and this time they go the whole hog and
they all vest immediately. Again, if the objective is to provide incentive the
question must be asked; Why should they vest immediately?
But perhaps the best example of the VZLA trough
happened on July 30th when, on the back of the $30m equity closing, VZLA
(and we quote), “…paid finders fees of $1,813,465 and issued 962,580 finders warrants
entitling the holder to purchase an additional common share of the Company at $1.87
per share for a period of two years.”
That’s an impressive payout in cash alone, considering $10m of the $30m raising
was Eric Sprott and that part only saw a thin 3% finder’s fee taken. That means
the “other $20m”, i.e. the part sold by the brokerages, got around $1.5m in
cash. But they also got those fat broker’s warrants which are not only priced
at a cheap $1.87 but…yes you guessed it, were exempted from the normal hold
period and were issued as vesting immediately by VZLA as part of the
arrangement. What happened next should tell you all you need to know about the
players around this company:
happened on July 30th when, on the back of the $30m equity closing, VZLA
(and we quote), “…paid finders fees of $1,813,465 and issued 962,580 finders warrants
entitling the holder to purchase an additional common share of the Company at $1.87
per share for a period of two years.”
That’s an impressive payout in cash alone, considering $10m of the $30m raising
was Eric Sprott and that part only saw a thin 3% finder’s fee taken. That means
the “other $20m”, i.e. the part sold by the brokerages, got around $1.5m in
cash. But they also got those fat broker’s warrants which are not only priced
at a cheap $1.87 but…yes you guessed it, were exempted from the normal hold
period and were issued as vesting immediately by VZLA as part of the
arrangement. What happened next should tell you all you need to know about the
players around this company:
With financing closed we
went into the Canadian Long Weekend and Monday August 3rd Civic
Holiday. Over that long weekend, retail investors had been primed by their
promotional channel of preference on VZLA and sure enough, it opened Tuesday
August 4th with a bang. The very next day, in some sort of weird
coincidence, VZLA announced this:
went into the Canadian Long Weekend and Monday August 3rd Civic
Holiday. Over that long weekend, retail investors had been primed by their
promotional channel of preference on VZLA and sure enough, it opened Tuesday
August 4th with a bang. The very next day, in some sort of weird
coincidence, VZLA announced this:
Vizsla Drills 1,541 g/t Silver Equiv. Over 2 Metres and 261 g/t
Silver Equiv. Over 22.6 Metres at Panuco, Mexico
VANCOUVER, BC,
Aug. 5th, 2020 /CNW/ – Vizsla Resources Corp. (TSXV: VZLA) (OTCQB: VIZSF) (Frankfurt: 0G3) (“Vizsla” or the
“Company”) is pleased to announce additional drilling results from
the Napoleon Vein Corridor (“Napoleon”)…(17)
Aug. 5th, 2020 /CNW/ – Vizsla Resources Corp. (TSXV: VZLA) (OTCQB: VIZSF) (Frankfurt: 0G3) (“Vizsla” or the
“Company”) is pleased to announce additional drilling results from
the Napoleon Vein Corridor (“Napoleon”)…(17)
You see the resulting
volume surge on the back on that NR, but to retail’s dismay the stock failed to
rally and we now know why; brokerages were suddenly offered to make their
Broker’s Warrants whole, and turn them into instant cash. Sure enough, they
didn’t hang around.
volume surge on the back on that NR, but to retail’s dismay the stock failed to
rally and we now know why; brokerages were suddenly offered to make their
Broker’s Warrants whole, and turn them into instant cash. Sure enough, they
didn’t hang around.
Cut to today and it
comes as no surprise to see VZLA now sitting on and around that $1.87 warrant price
point, seemingly incapable of breaking back out toward the other one at $2.40. The
stock was overwhelmed by Vancouver’s Finest hitting payola and now you know
more about who really pays the sordid band of newsletter writers that promote
this rigged stock and many others like it to naïve fools.
comes as no surprise to see VZLA now sitting on and around that $1.87 warrant price
point, seemingly incapable of breaking back out toward the other one at $2.40. The
stock was overwhelmed by Vancouver’s Finest hitting payola and now you know
more about who really pays the sordid band of newsletter writers that promote
this rigged stock and many others like it to naïve fools.
As for the future of
this company, take a look at the long-term price chart of Fiore Gold (F.v), a
company well-known to these pages, for the optimistic case:
this company, take a look at the long-term price chart of Fiore Gold (F.v), a
company well-known to these pages, for the optimistic case:
People hear the word
“scam” and automatically jump to the conclusion that the geologists are making
up stories. In fact it’s the people holding the purse strings who do that and
once they’re done, it’s perfectly possible there’s a decent little junior
waiting to develop. However, all that has to happen in phase two, here at VZLA
we’re still in phase one where stupid people use these shares to hand too much
of their money over to immoral people. Fiore Gold, above, is a classic example
and for the details, in that case the cash was Frank Giustra and the media
vehicle of choice CEO.ca and the toe rags who publish “independent research”
there. As things turned out Fiore was blessed with a good CEO and a real plan
and as such, F.v is a near best-case;
for every Vancouver
pump vehicle that eventually survives and thrives there are ten which get
nowhere. Time will tell on VZLA, however I suspect the latter because there are
still far too many people invested with no real knowledge of Panuco and what’s
been known about its geology for decades (centuries, even).
“scam” and automatically jump to the conclusion that the geologists are making
up stories. In fact it’s the people holding the purse strings who do that and
once they’re done, it’s perfectly possible there’s a decent little junior
waiting to develop. However, all that has to happen in phase two, here at VZLA
we’re still in phase one where stupid people use these shares to hand too much
of their money over to immoral people. Fiore Gold, above, is a classic example
and for the details, in that case the cash was Frank Giustra and the media
vehicle of choice CEO.ca and the toe rags who publish “independent research”
there. As things turned out Fiore was blessed with a good CEO and a real plan
and as such, F.v is a near best-case;
for every Vancouver
pump vehicle that eventually survives and thrives there are ten which get
nowhere. Time will tell on VZLA, however I suspect the latter because there are
still far too many people invested with no real knowledge of Panuco and what’s
been known about its geology for decades (centuries, even).