Thread by @BambroughKevin

Been thinking more about what’s happening with SPUT $u.un $u.u $spruuf

The impact of the shares no longer being approved for trading in the USA via OTC is nearly entirely to blame for the current down trend. Here’s why and what happened: (securities lawyers can help here)

Just a couple weeks ago SPUT $sruuf was shut down from being able to trade OTC (over the counter) USA by many brokerages. This happened because of a rule change for foreign funds and disclosures/approvals required by USA regulators and USA brokers.

When Sprott took over management of Uranium Participation Corp they converted it to a Trust (fund) and added the ATM abilities. It was at first able to trade in the USA but due to a rule change and Sprott not filing a “KID” doc and getting approval to distribute this “Fund”

It was shut down from being able to issue shares in the USA via OTC ATM (at the market issuance to fund uranium purchases). In the weeks prior to being shut down it was doing significant volume in the USA often half or more the daily total volume. So the USA fund flow tap closed

What also happened is due to the lack of “KID” filing and USA issuance approval USA brokers turned off the ability to buy shares but left open the ability to sell shares. So, as a result all USA volume is really selling volume from those profit taking the run, cutting losses,

Selling because it’s run a lot and is technically looking weak and scaring the newbie that perhaps lacks real conviction in the #uranium theme. So, the OTC market maker will be buying up all the selling volume in the USA market and then selling those shares on the TSX as $u.un

So, the TSX trading volume is getting hit daily with selling from the USA and that is making up a large part of the daily volume and limiting SPUT’s ability to ATM on the TSX. Perhaps, giving some uranium followers the impression that SPUT isn’t issuing enough shares

But, its really that the USA inflow tap is turned off but the USA outflow tap has been left running. So, its a lot for the TSX trading to absorb and SPUT being a key indicator of spot uranium prices has been trading down and falsely indicating to the Uranium market

It’s been giving some uranium traders the impression that the financial market interest is weak and leading some players to take profits, especially those that were trying to front run SPUT’s buying. So, what next… well, I see people criticizing SPUT for not filing the “KID”

Well I thought more about this and chatted with my old lawyer buddy Paul about what we would have done if we were still at Sprott. Like Sprott we would have been busy focusing on getting shareholder approval of UPC and taking management control. Lawyers working over time on that

Then as that paper work and approval was granted we would have been working over time to complete the trust filings and getting the ATM turned on for the TSX. Now, attention would be also focused on the next step, preparing all the paper work for NYSE approval and a full USA list

That is the goal for them and that’s what they would be focused on. NYSE. I think they and frankly 99% of the market was surprised by the volume fund flows and price spike. They weren’t planning to have big OTC inflows prior to NYSE or the downside of outflows only now.

But, just so you understand, I’m told if your applying for an NYSE listing and approval, you would not be filing a “kid”and seeking approval for OTC issuance. You’d never do both at the same time. Bottom line, I assume they are working overtime on NYSE and its likely moving..

Along just fine. Paul also reminded me that when youre filling to add to another exchange is not a public filling. We should just expect an announcement of the approval if/when it happens. It’s not material information that youre applying. They’ve told the market they are

Are working on it. Nothing to announce until they get approval. I believe they said late q4 or early q1. Likely being conservative. Anyhow chill out.. relax. Its coming and the USA market that dwarfs the Canadian market will be reopened for SPUT soon enough..