Hi everyone,

I wanted to respond in more detail to the question at last night’s zoom call regarding what action to take with Hawthorn Resources (HAW) given the resignation of a Director.

Chris Corrigan holds 30% of the company but has resigned as of yesterday. I thought I should lay out the facts:

– The company has provided no more information regarding the reasons behind Corrigan’s resignation.

– As yet, he has not sold his shares.

– The company is thinly traded.

– The share price is above it’s Sell point, but the share price dropped 11% yesterday.

– I have found no news about the resignation on the internet. Pending any further news today about the reason for Mr. Corrigan’s resgnation, I will not be selling HAW from the Dummy portfolio.

My speculation is that if Mr Corrigan sells his shares it probably would have to be in a block trade. Ie, in a large parcel to an institution. It is possible, that the company may opt to buy back shares, but this is unlikely. The fact that there is no context around his resignation or announcements around board direction or renewal from the company suggests that this announcement was unplanned. But, in the absence of further information and given that the shares are close to the sell line I am willing to wait for developments today before making a call. One thing I wanted to highlight is that selling may force the shares down quickly in this thinly traded stock. That is why I reinforce that purchases in a company like this should only amount to 25-33% of the Average Daily Traded amount.

Regards, Tony

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