Why is the Anson Resources (ASX:ASN) share price down 16% in a week?

Despite plenty of news having been released by the company, the Anson Resources share price has been struggling lately.

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The Anson Resources Ltd (ASX: ASN) share price has been plummeting over the last 7 days.

The company has released several announcements to the ASX in that time, detailing free offers, positive assay results, and its approach to environmental, social, and governance (ESG) issues.

However, the updates haven't been enough to boost the company's stock out of its slump.

Since this time last week, the company's shares have fallen 16.3% to trade at 9.2 cents.

Let's take a look at what Anson Resources has been up to over the course of this week.

white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

What's Anson been up to this last week?

The Anson Resources share price has been struggling over the last week despite releasing 3 seemingly positive updates.

First, the company provided more details on its previously proposed bond offer. Under the offer, shareholders in the company will receive 1 bonus offer for every 10 shares they hold.

The freebie was announced last Tuesday as part of a $7.35 million placement. Though, its prospectus was released after Friday's close.

Under the prospectus, the free offer will have an exercise price of 9.1 cents and will expire on 29 October 2021.

For each option exercised, shareholders will receive another free option with an exercise price of 20 cents and an expiry date of 31 July 2023.

On Monday – the first time the market could react to the prospectus – the Anson share price fell 6.3%.

Then, on Tuesday, Anson announced assay results from stage 2 of exploration at its Yellow Cat Project. The assay results included:

  • up to 10.33% triuranium octoxide – a compound of uranium – and 25.61% vanadium oxide.

The Anson share price gained back 3.3% on the back of the assay results.

Today, it managed to recover from a poor start to trade. At the time of writing, the Anson share price is flat with its previous closing price.

This morning the company released a non-price sensitive investor presentation on its approach to ESG issues.

Anson's approach to ESG issues sees it adopting sustainable technologies, avoiding disturbing natural or historical environments, and employing local people.

Anson share price snapshot

Despite its recent slip, the Anson share price is currently 200% higher than it was at the start of 2021.

It has also gained 350% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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