Hardly the first time, either. Read the whole of today’s NR out of Zacapa Resources (ZACA.v) below, here we point out the best bit:
“…Zacapa does not believe the statements in the promotional newsletter e-mails are false or misleading.“
In other words, ZACA CEO Adam Melnik agrees with this statement:
“Most of you have probably never heard of Quinton Hennigh before, but he is the #1 most brilliant geologist in the world. He is almost always proven right about every single thing that he says!“
A simple question: Would you invest your money in a company run by people who believe that Quinton Hennigh, a geologist without a single economic discovery to his name and a track record of vaporizing hundreds of millions of dollars of shareholder cash in a whole series of failed juniors is (and we quote), “...the #1 most brilliant geologist in the world.”? That he was right about Rattlesnake Hills? About Beaton’s Creek? About the litany and crashed and burned explorecos that P.T. Barnum PhD compulsively promotes to idiot retail, feathering his own nest while screwing over everyone else as they invariably pump and then dump? If you do, CEO Melnik and his management team are up your street so consider giving this latest P+D riding Quinton Hennigh’s coattails some of your dollars in exchange for some of their shares. And once you’re done, don’t forget to reach out to ZACA and get in touch with the team afterward, they’re going to love you I promise. You’ll feel loved. You’ll feel cared for. You’ll want to defend them and their company against all the nasty bloggers.
Anyway, here’s the entire NR in which, once again, the US OTC does the job the TSXV refuses to do:
VANCOUVER, BC, Aug. 4, 2022 /CNW/ – Zacapa Resources Ltd. (TSXV: ZACA) (OTCQB: ZACAF) (DE: BH0) (“Zacapa” or the “Company”) has been requested by OTC Markets Group Inc. (“OTC Markets”) to issue this statement about promotional activity concerning its common shares (the “Common Shares”).
On July 28, 2022, OTC Markets informed the Company that it became aware of certain promotional activities concerning the Company and the Common Shares that trade on the OTCQB Marketplace, related to the distribution of promotional newsletter e-mails published by The National Inflation Association. The publications also contained links to marketing materials, such as Zacapa’s current investor presentation.
GRA Enterprises LLC (“GRA”) of North Carolina, is a third-party investor marketing and advertising firm retained directly by Zacapa and which was responsible for the distribution of the promotional newsletter e-mails published by The National Inflation Association. Zacapa’s management and officers did not create, review or approve of the content distributed but Zacapa does not believe the statements in the promotional newsletter e-mails are false or misleading. Zacapa did not have editorial control over the content.
GRA was retained for a 12-month term that expires on July 20, 2023, at an upfront fee of US$100,000. The agreement remains subject to the approval of the TSX Venture Exchange (the “TSXV”) and this disclosure is made in accordance with the requirements of the TSXV Policy 3.4. GRA and Zacapa are at arms-length and GRA has no interest, directly or indirectly, in Zacapa or its securities but may purchase securities in Zacapa from time to time for investment purposes in the future.
GRA provides fee-based marketing services to TSX Venture Exchange listed companies through email distribution lists, blog posts and social media. GRA will provide Zacapa services specifically related to the distribution and exposure of news related to the advancement of Zacapa’s South Bullfrog Gold Project. The Company understands this promotional activity coincided with increased trading activity in the Common Shares beginning on July 27, 2022.
The company has had previous engagement over a 12-month period with additional third party providers who have provided various investor relations, marketing and awareness campaigns including Native Ads. The company is still currently under contract with RB Milestone Group, and GRA.
None of the Company’s directors, officers, controlling persons, or any controlling shareholders (defined as shareholders owning 10% or more of the Company’s securities), have, directly or indirectly, been involved in any way, including with the creation or distribution of the promotional email distributed by GRA, related to the Company and its securities. The company did, however, issue an upfront payment directly to GRA as per the contract dated July 20, 2022.
The Company independently confirms that no Company officer, director, controlling shareholder, or third-party service provider, has sold any Company securities during the previous 90 days.
The OTC Markets has further requested that the Company state whether it has issued any Common Shares or convertible instruments allowing conversion to equity securities at prices constituting a discount to the current market rate at the time of the issuance. The Company represents, as disclosed in its public filings on SEDAR, that since listing on the TSXV on January 26, 2022 it is has not issued any Common Shares at a discount to the market price at the time of the offering.