Choo-Choo had to disclose (by law) his then current holdings of ZEN on May 11, 2018.
His disclosure: 132,400 common shares of ZEN and 38,000 warrants. (He did NOT reveal the source, exercise price or the expiry date of the warrants)
Given that his warrants did not expire on June 10th, 2018 - They were NOT from the 2016 Rights Offering. Currently, the only unexpired ZEN warrants are the following 2 issues:
- 845,000 warrants from the Aug 2015 PP with an exercise price of $1.65 (with an expiry date extended YESTERDAY by one year to Aug 11, 2019)
- 368,157 warrants from the failed Dec 2017 PP with an exercise price of $1.00 with an expiry date of Dec 19, 2019
On April 10, 2018 Team Yellow revealed that their efforts to get answers and bring about management change started at the AGM in Sep, 2017. One of their main concerns was AE’s inability to raise the funding needed to move ZEN forward. Given this concern I view it as extremely unlikely that Choo-Choo and friends were participants in the Dec 2017 PP – How likely is it that they would risk that their investment would allow AE to have full subscription to the Dec 2017 PP and thereby reduce the effectiveness of their argument?
So where did the 38,000 warrants that Choo-Choo had to disclose on SEDI come from? The only source other than the failed Dec 2017 PP is the August 2015 PP.
Prior to the August, 2015 PP, several members of the flock had been asking about participating in future PP’s. Here is Choo-Choo’s posted response to one of the interested sheeple
JULY 22 2015 “I asked Aubrey to be included in a PP if there was one open and the answer was that there was no PP so good luck getting in on one Liberator. If you want shares, the open market is the only place you will find them from what I have observed so far with ZEN”
On July 28, (6 days after the above post) Zen announced a $2 million PP at $1.25 with warrants at $1.65 for one year. (These warrants were extended by Zen for 2 years in 2016 and then Choo-Choo and friends extended them for another year YESTERDAY).
Curiously, even though his original response to Liberator was “inaccurate” Choo-Choo chose not to let the flock in on his participation in the PP.
Instead on the day of the PP announcement he posted:
This is less than half the required funds to complete the PFS and the work that RPA recommended so that should tell investors that something more is afoot. Otherwise, they would of raised more money now.
On the following day he posted:
I suspect we will know within a few months as they will have to fast track ZEN to have product by summer 2017. This may also help explain why ZEN did such a small raise of funds.
You gotta give him credit - He knows how to PUMP.
So – did Choo-Choo sell some of his previous holdings while pumping to the flock so as to enable him to purchase 76,000 shares in the PP and receive 38,000 warrants? It appears VERY LIKELY
It was definitely in his best interests to extend the expiry date of HIS $1.65 warrants yesterday (the ones he previously didn’t admit to owning until required by law)
That Choo-Choo - WHAT A GUY!!! |
