Trading Places: After three years of suspension, this tin company raised $20 million

In this week’s recap of substantial holders, a Dubai executive bought into Prospect Resources (ASX: PSC), Salt Funds Management sold $8.3 million of Monash IVF (ASX: MVF) and a tin company raised $20 million to save itself from the ‘three-year suspension’ axe.

Substantial shareholders are shareholders holding 5 per cent or more of a company’s shares and these can be directors, individual investors or institutional investors.

Shareholders are required to announce to the exchange when they cross above or below the 5 per cent threshold and any change in their holdings while they remain above 5 per cent.

Buyers

Any stocks that have been suspended for three years are removed by the ASX. Consolidated Tin (ASX: CSD) was facing the axe but raised $19.95 million just in the nick of time. Although this was almost their entire market capitalisation pre-suspension, this investment will only give the investors 5.64 per cent.

The investor is a private Hong-Kong domiciled company called Wealth Pointer. Perhaps the Hong Kong protests really are forcing investors to move money out of the territory.

African-focused explorer Prospect Resources (ASX: PSC) is another stock that welcomed an international substantial holder. A Dubai-based company called ‘Lord of Seven Hills Holdings’ bought a 10.98 per cent stake for nearly $4.4 million.

The person behind this company is Guarav Gupta; not the Indian fashion designer, rather the managing director of commodity trader Global Natural.

Vango Mining (ASX: VAN) director Shengqiang Zhou nearly doubled his holdings having bought $5.4 million to take an 8.64 per cent stake.

Late last week, the Woolworths-Marley Spoon (ASX: MMM) partnership became official, with the grocery giant investing $4 million on a 5.52 per cent stake. All up it will invest $30 million, with most of the funds commercial notes.

Among the fund manager trades this week, troubled dental stock Smiles Inclusive (ASX: SIL), raised $1.2 million thanks to 2020 Asset Management buying an 8.71 per cent stake for $861,000. New York based fund manager Bonafide Wealth Management increased its stake in Clean Seas Seafood (ASX: CSS) to 8.8 per cent, buying $642,000 in shares.

Spheria Asset Management increased its stake in Gage Roads Brewing (ASX: GRB), GBST Holdings (ASX: GBT) and Austin Engineering (ASX: ANG). All up Spheria spent $10 million on these three stocks. The latter is most noteworthy because Spheria doubled its stake from 5.12 per cent to 11.22 per cent.

Regal Funds Management bought into Midway (ASX: MWY) with an 8.03 per cent for $10.2 million and topped up its stake in Stanmore Coal (ASX: SMC) by $6.8 million to 10.95 per cent.

Sellers

Auckland-based Salt Funds Management were the most notable seller – selling $8.6 million Monash IVF (ASX: MVF) shares. They are no longer substantial holders but still hold 4.6 per cent.

Sydney-based Candence Asset Management sold $4.4 million in its Noni B (ASX: NBL) stake consequently taking it to only 4.12 per cent.

Other substantial holders completely sold out of their holdings. While a Catholic university in Indiana are investors in Amaysim (ASX: AYS), Challenger are not anymore because it completely sold out. Similarly, Force Commodities sold out of Marquee Resources (ASX: MQR).

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Brisbane-headquartered Discovery Asset Management had made few moves in the last months but sold $2.7 million in its Austin Engineering (ASX: ANG) stake taking it to 0.94 per cent. It also decreased its stake in RPMGlobal Holdings (ASX: RUL).

Fidelity reduced its stake in IVE Group (ASX: IVE) to 5.59 per cent by selling $3.6 million.

Altura Mining (ASX: AJM) saw Shaanxi completely sell out. But while some companies may be concerned when a large holder sells out, it welcomed the move. Another Chinese substantial holder, Ningbo Shanshan, a battery materials supplier, bought those shares and it now owns 11.8 per cent.