Cerro is currently delinquent in it’s filings. It may be that tax loss selling is the simple explanation for today’s higher trading volume. Alternatively, a case could be made that dilution may be occurring by issuing treasury stock to pay the expense of bringing/keeping minimum required regulatory filings up to date.
In either case, Cerro is going nowhere fast if it remains just a holding company. It is apparent the company is cash poor with it’s only asset an equity interest in AURYN. In order to keep it’s regulatory status intact in future months/years it will need to pay the operational expense of filings. Issuing preferred shares or selling treasury stock is necessary, but dilution will not increase shareholder value for the short term. Once AURYN starts actually producing and showing itself to be cash flow positive market activity may rise substantially. Hopefully, currently held shares are in tightly held hands that will be awaiting the day when AURYN can start issuing dividends, which is likely years away. A spinout into a publicly held company could thus isolate current shareholders (that are financially secure enough to hold for several years). As already suggested, after a spinout is completed, the remaining CDCH shell would be used to fund and carry a separate viable project. Shareholders will have to wait until the issuing of the next regulatory filings to see what the company intends to do, IMO.