Title : The Vizsla Resources (VZLA.v) 2q20 financials has a list (from IKN588)
link : The Vizsla Resources (VZLA.v) 2q20 financials has a list (from IKN588)
The Vizsla Resources (VZLA.v) 2q20 financials has a list (from IKN588)
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:
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?
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:
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:
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)
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.
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.
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:
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).
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