Saturday, 9 November 2013
Rey finds a "cornerstone investor"
Rey Resources (REY.AX) is one of the major holdings of AFA. On 29 October 2013, REY issued $71m shares at around $0.06 to new "cornerstone investor" Crystal Yield Investments, further increasing the proportion of shares controlled by top twenty shareholders. Before taking up this 19.9% block of shares, Crystal Yield transferred its existing 9.8% ownership in Rey to parent company Ricky Holdings, because reasons. To celebrate, the price was ramped to $0.125 in early November, allowing the "cornerstone investor" an immediate unrealized "profit" in excess of $4m on its "investment", and prompting ASX to send one its price query charade letters. REY's share price, volatile even by mining exploration company standards, follows the standard pattern of long term shareholder value destruction interspersed with temporary ramps to benefit insiders.