Asanko Gold Halted After Muddy Waters Announces Short Position

Gladys Abbott
June 1, 2017

Shares of Asanko Gold Inc (AKG.TO) tumbled 13 per cent on Wednesday after US -based investment firm Muddy Waters said it was shorting the stock due to a string of problems at the miner's Ghana operations and the "significant risk" of a 2018 liquidity crisis.

TRADEMARK VIOLATION NOTICE: "Asanko Gold Inc (AKG) Earns "Outperform" Rating from Scotiabank" was first posted by Sports Perspectives and is the sole property of of Sports Perspectives. They presently have a C$5.75 price objective on the stock. BMO Capital Markets decreased their price target on shares of Asanko Gold from C$5.00 to C$4.50 in a research note on Friday, March 17th. Raymond James Financial, Inc. reissued a strong-buy rating and issued a C$4.75 price target on shares of Asanko Gold in a research note on Tuesday, April 18th. Clarus Securities reiterated a "buy" rating on shares of Asanko Gold in a report on Friday, May 5th.

Last June, Toronto hedge fund K2 & Associates Investment Management Inc took a short position in Asanko, saying its gold resources were overinflated, notably at its Nkran deposit, which Asanko acquired in 2014 from Resolute Mining Ltd. Fiera Capital Corp now owns 10,678,472 shares of the basic materials company's stock worth $32,710,000 after buying an additional 3,568,830 shares during the last quarter. The company's stock had a trading volume of 373,850 shares.

Asanko Gold Inc is a gold producer.

12/11/2013 - Haywood Securities began new coverage on Asanko Gold Inc. giving the company a "buy" rating. The company's 50 day moving average is $3.15 and its 200-day moving average is $3.90.

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Company shares have been seen trading -72.44% off of the 52 week high and -31.02% away from the 52 week low.

Shares of Asanko Gold (TSE:AKG) traded up 1.85% on Monday, reaching $3.31.

Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Asanko Gold investors. The Company has operations in the Republic of Ghana.

"The best-case medium-term scenario seems to be an extremely dilutive equity raise, possibly approximating half of AKG's market cap", the report said, referring to Asanko by its Canadian stock ticker. The Company's principal asset is the Asanko Gold Mine (AGM) located in Ghana, West Africa.

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