Here is one problem with the market... consider this as one reason why KXL does not see any upward momentum... flow-through financings being pre-sold into the market before shares issued... blatant example re: KXL in December 2009... not to mention selling pressure from shares sold after for purely tax benefits as someone here mentioned was discussed at presentation yesterday...

On Dec 1st KXL announced $8M PP (12M flow-through at 65 cents)... Between Dec 1st and Dec 15th KXL short volume uncharacteristically spikes by some 685K shares... On Dec 17-18th this PP is closed and formally accepted by the exchange (i.e. shares are issued to participants)... Between Dec 16th and Dec 31st KXL short volume returns to basically 0 (i.e. ~700K shares covered)... During December KXL share price decreased fro a high of 57 cents to a low of about 47 cents... this during a month in which they announce an over-subscribed PP for almost $14M...

Here's what happened IMO... when proponents learned of flow-through PP at 65 cents they immediately sold to lock-in gains AND tax advantages... 65 cent flow-throughs sold at 55 cents lock in quite the profit and tax benefits (not a bad 'present' especially in the last month of the year)... actually kinda makes you wonder the real motives behind this PP especially given money was not really needed... anyhow... basically these PP proponents sold their shares even before they received shares... it does happen... this is proof IMO... so much for the '4-month hold-period' hugh?... this drove up short volume during first half of the month... when shares were issued to those who shorted this effectively canceled out their shorts... whoever owned these almost 700K shares walked away with capital gain and tax benefits... zero cost... not bad for a months work... in December...

red911

Short History
Symbol Report Date Volume Change
KXL - V 2010-01-15 -2,000
KXL - V 2009-12-31 2,000 -732,000
KXL - V 2009-12-15 734,000 685,500
KXL - V 2009-11-30 48,500 17,500
KXL - V 2009-11-15 31,000 31,000
KXL - V 2009-08-31 -500