Aussie miner gets caught up in GameStop short-squeeze
The small-cap ASX-listed miner, GME Resources was placed in a trading halt on Friday in a careless case of mistaken identity.
The $38 million market cap Nickel Miner from Western Australia coincidently has the same trading ticker (GME) as the NYSE-listed favourite, GameStop. Shares in the small-cap stock, which have been trading around 6-7 cents in recent weeks, soared to 11.5 cents on Thursday to ultimately close a modest 13% higher at 8.5 cents.
However, when the stocks rose another 53% on Friday to 13 cents, trading was paused and subsequently halted by 10.30 am.
James Sullivan, GME’s managing director, told The Age and The Sydney Morning Herald yesterday he was stunned after waking up to see the company’s share price up over 50%.
“When I opened my share tracking app and saw it was at 9.4 cents, I was stunned,” he said. “It just went bang, and I thought, ‘Well, what’s going on here?’ Is there something about my own company that I don’t know?“
Once the coincidence was discovered, the company alerted investors and resumed trading two hours later, at which point the share price sunk back to its two-week moving average of 7 cents.