Director Trades: When your tenure’s ending its time to cash out (in the millions)
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At the start of the year James Chisholm’s stake in Atrum Coal (ASX:ATU) was just under $4m. But he’s retired from the board and sold his shares to Regal Funds Management, which now holds 13.5 per cent of the company.
With Atrum’s rise from 9c to 30c, the sale netted him $12.8m. He walked out and sold his stake with the board’s blessing and no personal regrets. “After investing many years in Atrum, I feel now is the right time for me to depart and focus on my other business opportunities,” he said.
Another director who chose to sell more than $1m with departure imminent was Frontier Resources (ASX:FNT) director Yun Wei Dong – $3.6m to be exact. He was a representative of Forise Investments. The investor held 68 per cent and now holds just 5 per cent.
Five other directors sold over $100,000. Two of these were CoAssets (ASX:CA8) chairman Getty Goh Te-Win, who sold $300,000, and director Seh Huan Kiat, who cashed out $150,000. But both still own 36 per cent of the company between them.
Northern Minerals’ (ASX:NTU) George Bauk sold $139,860, and Colin McCavana sold $111,350. Both blamed a tax liability and Bauk said he would buy more shares in the upcoming capital raise.
Troy Resources director (ASX:TRY) John Sones sold $172,794 at the start of the week, then sold another $125,077 later in the week for a total of nearly $298,000. Gulf Manganese (ASX:GMC) director Hamish Bohannan sold $199,634.
The biggest buyer (declaring) this week was Eagle Mountain Mining (ASX:EM2) director Charles Bass who bought nearly $1.1m.
Other mining directors who bought were Ironbark Zinc’s (ASX:IBG) Danny Segman who bought $113,136, Pelican Resources’ (ASX:PEL) Antinio Alessio Torresan who bought $182,359 through exercising options and Empire Energy (ASX: EEG) Paul Espie who bought $109,951.
Mobilicom (ASX:MOB) director Jonathan Brett bought $100,000 in a recent placement. He bought only two days after it announced the first sale of its SkyHopper – to Samsung.
The next biggest traders were Sean Hall and Michael Hall from pot stock Medlab Clinical (ASX:MDC), who bought $651,000 and $255,000 respectively through exercising options.
This came only a week after the company received human ethics approval for the upcoming trial of its cannabis-based medicine.
Sean Hall said, “Early data received is very pleasing and this coupled with the learnings from the current Australian SAS usage, NanaBis is a strong contender for pain management and in my mind a viable pain management medication.” He’s certainly put his money where his mouth is.
Another health director who bought was Paradigm Biopharmaceuticals (ASX:PAR) director Christopher Fullerton.
He bought $169,920 in a rights issue and on-market trade. The rights issue purchase occurred two months ago and the latter last week — bringing the former to the company’s attention and the ASX’s when it was filed.
The ASX sent a ‘please explain’ letter to Paradigm, which reminded its directors of the company’s trading policy.
This aside, it has been a few positive months for the company. In early June it announced a trial showed its drug was effective at fighting Ross River virus.