Someone mentioned that based on their understanding of the TSX rules and the complexity of the transaction, Novo probably won’t resume trading till next week?
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Reading the IIROC’s information, it seems that they are MOST interested in shareholders getting the material information and then resuming trade upon publication of the information. Why they would halt it until next week I do not know. From the IIROC of Canada:
When surveillance staff believe that the information is material enough to significantly impact the price of the security they might issue a “trading halt.” A trading halt is a temporary pause in trading to allow the market to properly absorb the information. It is based on the principle that all investors should have the same timely access to important company information.
7. How long will trading be halted?
A trading halt is normally very temporary – typically lasting less than two hours. The actual length of the trading halt is determined by IIROC, taking into account the significance of the company’s announcement and the time required to disseminate the announcement.
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I pulled this off another board:
“TSXV needs to review NVO’s submission including MOY 43-101, MOY audited financials, MOY tenure title opinion etc. before releasing. Simply the requirements when one triggers a Fundamental Acquisition/Reviewable Transaction per TSXV policies.”
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I found this in the TSX Exchange Manual, Policy 5.3 (applying to mergers and acquisitions):
(d) A trading halt will generally be lifted after the Exchange has had an opportunity to review:
(i) a draft agreement in respect of the transaction;
(ii) Personal Information Forms or, if applicable, Declarations for any new or proposed new Insiders;
(iii) a Geological Report for any natural resource property acquisition or an independent Geological Report, if the natural resource property
acquisition is a Fundamental Acquisition or involves Non-Arm’s Length
Parties; and
(iv) audited financial statements of the Company conducting the business or owning a material portion of the assets of a business proposed to be acquired, if required by the Exchange.
(e) Where a halt in trading has been required in connection with the transaction, the Issuer must issue a news release regarding the status of the transaction every 30 days following any trading halt, until the transaction is complete and a news release has been issued confirming closing of the transaction.
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Wow! Sounds like the halt could drag on for awhile.
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Yes, potentially - but something tells me Mr. Hennigh is not “mucking around”, as he said yesterday!
One way or another, I’m going to drastically increase my position in Novo in the next month or so. There is finally a clear pathway to production. It is a slam dunk now.
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As will I - that article that Rick cited above put it in perspective for me. 13,750 square kilometers? It draws comparisons between the Pilbara properties and the Witwastersrand conglomerate in South Africa, which is responsible for a full 1/3 of world historic gold production. Those are some serious words there. I’m sitting here watching my portfolio rise, and all those stocks are doing well, but I’m thinking this is a lead-pipe cinch.
Regarding Novo Trading Halt from another shareholder’s note from Q.H.:
"Quinton Hennigh
11:38 AM
all the filings have been submitted
it is up to the exchange…they just seem to be slower in the age of COVID
anyway, all is good, very good!"
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What is the stock symbol? Have you bought on TD Ameritrade? I had an order to buy NSRPF but I saw you were buying NVO.V. I don’t see NVO. V in TDA.
NVO.V is the symbol for Novo on the Canadian Venture exchange. The stock halt is ongoing so neither symbol can be purchased.
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Can I buy on NY exchange. Is that what the NSRPF is? It is at 3.29.5 but looks halted.
$3.295. Got an extra . In there…
NSRPF is on the OTC exchange. The trading for both symbols is halted. Has been since yesterday morning.
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FYI…sorting through the various rumors, purportedly trading on Novo should resume tomorrow or Friday.
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Thanks for the info!
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More news!
Novo Announces Upsize of Previously Announced Private Placement to C$42.5 Million and Concurrent Non-Brokered Private Placement of C$3 Million
VANCOUVER, British Columbia, Aug. 05, 2020 (GLOBE NEWSWIRE) – Novo Resources Corp. (“ Novo ” or the “ Company ”) (TSX-V: NVO; OTCQX: NSRPF) is pleased to announce that due to demand from investors, it has increased the size of the previously announced private placement of subscription receipts (“ Subscription Receipts ”) of the Company from C$30 million to C$42.5 million and the size of the agents’ over-allotment option from 15% to 20% (the “ Increased Brokered Offering ”) in conjunction with its planned acquisition of Millennium Minerals Limited (the “ Acquisition ”) ( please refer to the Company’s news release dated August 4, 2020 for further details ). The Increased Brokered Offering is through a syndicate of agents led by Clarus Securities Inc. and Stifel GMP (the “ Agents ”). The Company is also pleased to announce a non-brokered private placement (the “ Non-Brokered Offering ”) of subscription receipts having the same characteristics and convertible into the same underlying securities as the subscription receipts offered under the Increased Brokered Offering (and hereafter also referred to as Subscription Receipts ), to a president’s list on the same terms as the Increased Brokered Offering.
Under the Increased Brokered Offering, the Company may issue up to 13,076,923 Subscription Receipts at a price of C$3.25 per Subscription Receipt for gross proceeds of up to C$42.5 million (up to approximately US$31.7 million) which will be placed in escrow and released immediately prior to closing of the Acquisition, as described in Novo’s news release of August 4, 2020. The Agents will have an option (the “ Over-Allotment Option ”) to offer up to an additional 20% in Subscription Receipts up to 48 hours prior to closing of the Increased Brokered Offering. The Agents will have no obligation to exercise the Over-Allotment Option.
Under the Non-Brokered Offering, the Company may issue up to an additional 923,076 Subscription Receipts at a price of C$3.25 per Subscription Receipt for gross proceeds of up to C$3 million (up to approximately US$2.2 million) which will also be placed in escrow and released immediately prior to closing of the Acquisition. The Subscription Receipts issued under the Non-Brokered Offering will also be issued pursuant to the subscription receipt agreement described in Novo’s news release of August 4, 2020. Finder’s fees may be payable with respect to subscriptions under the Non-Brokered Offering.
In aggregate, the Company may issue up to 13,999,999 Subscription Receipts at a price of C$3.25 per Subscription Receipt for gross proceeds of up to C$45.5 million (up to approximately US$33.9 million).
The net proceeds from the Increased Brokered Offering and the Non-Brokered Offering will be used to fund the Acquisition, for capital expenditures relating to the restart of Millennium’s infrastructure, and for general corporate working capital purposes related thereto.
The Increased Brokered Offering and the Non-Brokered Offering are subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of the TSX Venture Exchange.
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Novo is issuing more shares and raising more money. Wonder what’s next.
For those who are only casually familiar with the potential of Karora (formerly RNC), this Seeking Alpha article from April provides a comprehensive explanation of the company’s history (mistakes and successes), its management team and its future potential. Keep in mind this was written pre-split and pre-name change. Their acquisition of the Higginsville mill and land package, like Novo’s acquisition of the Nullagine mill was a game changer for the company. By Karora effectively taking control of all of the milling in the area for their own projects, it puts pressure on other companies without milling options. It could lead to future acquisitions of struggling companies in the future. While that certainly seems cutthroat, that is the gold mining business and I like being invested in the company that controls its own destiny.
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