Robert Pohly’s Samlyn Capital has disclosed a new position in Applied Minerals, Inc. (OTCMKTS:AMNL). According to a Schedule 13D form filed with the SEC, the fund owns 20.86 million shares of Common Stock, which represent approximately 19.7% of the company’s shares outstanding.
Samlyn Capital is a New York City-based hedge fund sponsor that invests primarily in value stocks. It was founded by Robert Pohly in 2006, and ran by him ever since. Its equity portfolio, worth more than $4.4 billion by the end of the second quarter of 2014, is mainly focused on consumer discretionary (29.3%), healthcare (21.3%) and finance (17.4%) stocks.
Applied Minerals, Inc. (OTCMKTS:AMNL) is a $75.26 million market cap global producer of halloysite* clay solutions from its wholly owned Dragon Mine property in Utah.
In addition to the 20.86 million shares of Common Stock, the company acquired, pursuant to an Investment Agreement, dated November 3, 2014, a 10% PIK-Election Convertible Note in the principal amount of $3.48 million (the “Onshore Convertible Note”) and another 10% PIK-Election Convertible Note in the principal amount of $6.52 million (the “Offshore Convertible Note”). These Notes were issued with an original issue discount pursuant to which Samlyn paid $2.08 million for the Onshore Convertible Note and $3.91 million for the Offshore Convertible Note. The Notes bear interest at 10% per annum, and can be converted at the option of the holders at any time into shares of Applied Minerals, Inc. (OTCMKTS:AMNL)’s Common Stock at a price of $0.92 per share.
These Notes were purchased by Samlyn in the context of the company’s private placement of $19.84 million 10% PIK Election Convertible Notes due 2018. This offering provided Applied Minerals, Inc. (OTCMKTS:AMNL) with $12.5 million in financing that “solidifies the Company’s financial foundation and provides us a comfortable runway to convert the many commercial opportunities currently in progress,” stated CEO and President Andre Zeitoun.
On top of Applied Minerals, Inc. (OTCMKTS:AMNL), Samlyn Capital is betting on Allergan, Inc. (NYSE:AGN). This is its largest stake, worth more than $157 million by the end of the second quarter, and has returned more than 76% year-to-date.
* Halloysite is a non-toxic, biocompatible, aluminosilicate clay, which possesses a tubular structure.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned.
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