In a recent transaction, Myrmikan Gold Fund, LLC, Myrmikan Capital, LLC, and Oliver Daniel Jr, Director and a ten percent owner of Rise Gold Corp. (CSE:RYES), acquired a significant number of shares in the company. The acquisition, reported on April 29, 2024, involved the purchase of non-derivative securities at a price of $0.095 per share, totaling approximately $217,099.
The transaction indicates a strong belief in the future of Rise Gold Corp, a company involved in metal mining. Myrmikan Gold Fund, LLC now holds 7,172,849 shares directly, while Myrmikan Capital, LLC, as the manager of Myrmikan Gold Fund, LLC, shares beneficial ownership of these securities. Additionally, Eridanus Capital, LLC, which is indirectly related to the reporting entities, acquired 2,105,263 shares, further solidifying their investment in the company.
It's worth noting that alongside these purchases, derivative securities in the form of warrants were also acquired. These transactions, which involved a "P" code, amounted to a total of $180,535 with a price of $0.158. However, according to the footnotes in the SEC filing, the holder has agreed not to exercise these warrants until the standstill agreement is terminated, which requires 61 days' written notice to the issuer from the holder.
The recent acquisitions by Myrmikan entities and Oliver Daniel Jr demonstrate a commitment to their investment in Rise Gold Corp, reflecting a positive outlook on the company's prospects in the metal mining industry.
InvestingPro Insights
Rise Gold Corp (CSE:RYES) has recently seen a notable uptick in insider acquisitions, suggesting confidence in the company's trajectory. Myrmikan entities and a key investor have increased their stake, aligning their interests closely with the company's performance. While this vote of confidence is significant, it's important to consider the broader financial context of Rise Gold Corp as provided by InvestingPro.
Despite the recent insider buying, InvestingPro Tips highlight that Rise Gold Corp has faced challenges, including weak gross profit margins and a stock price that often moves counter to market trends. Additionally, the company's short-term obligations outstripping its liquid assets and a lack of profitability over the last twelve months present potential concerns for investors. The company has also not been paying dividends, which can be a deterrent for income-seeking shareholders.
From a data perspective, Rise Gold Corp has a market capitalization of $8.72M USD, which is relatively small, suggesting it's a micro-cap stock. The company's P/E ratio stands at -1.89, and when adjusted for the last twelve months as of Q2 2024, it worsens to -2.51, indicating that the company is not generating profits relative to shareholder investments. Furthermore, the EBITDA growth rate has decreased by 35.98% over the same period, reinforcing the challenges the company faces in increasing its earnings.
However, it's not all negative. Rise Gold Corp has experienced a significant return over the last week and month, with price total returns of 18.18% and 51.05%, respectively. This recent performance may reflect a positive market reaction to the insider purchases or other factors that could be influencing the stock price.
For investors interested in a more in-depth analysis, there are additional InvestingPro Tips available for Rise Gold Corp, which can be found at https://www.investing.com/pro/RYES. To further enrich your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more insights and data points to guide your decisions.
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