SINGAPORE (March 11): ISR Capital shares are up today on heavy volume, despite news that largest shareholder David Rigoll has continued to dump his shares, flouting an agreement with the company.
As of 1.11 pm, ISR shares are up 22.73% to trade at 2.7 cents. Rigoll sold an additional 18 million shares on March 7 at an average price of 4.48 cents, following first sale of nearly 21.3 million shares at 4.7 cents each the day earlier. He bought his stake in the company at 0.5 cent.
With the sale on Tuesday, he still holds nearly 389.9 million shares, or 24.93% of the company.
Rigoll, 54, became ISR’s largest shareholder and was appointed as its executive director in the middle of last year.
Rigoll is unhappy that ISR has not paid his salary for February. He is also accusing the board of appointing a legal adviser with conflict of interests.
The company has denied his claims.
Rigoll used to be a director of Tantalus Rare Earths, a Germany-listed company that used to own the rare earth concession later sold to an entity called REO Magnetic for 3.7 million euros. ISR is trying to acquire a stake in this same concession for $40 million.
News of that planned acquisition sent ISR shares up 4,000% to as high as 33 cents last year, before crashing by more than half to 12.7 cents on Nov 24 – the same day John Soh Chee Wen, alleged mastermind of the 2013 penny stock saga was arrested.
Soh is alleged by prosecutors to have manipulated shares in ISR.
