Post by
JAUBE123 on Jan 06, 2018 3:04pm
Private Placement
A quick pull back before long term gain to be expected? anyone have any insight one this? Last company I held that went through private placement the share price just stayed stagnant for a month before going for a little run once it was completed. This seems like a big one?
Comment by
Contrarian333 on Jan 07, 2018 9:42am
What do you mean by a "big one"?
Comment by
JAUBE123 on Jan 07, 2018 10:41am
A big private placement with quite a bit of dilution.
Comment by
Contrarian333 on Jan 07, 2018 12:38pm
Got it. I think they will probably finance with a combo of the Pala debt, an offtake arrangement with a customer and finally about $3m in equity. I think the value created by the restart will more than mitigate the dilution of the equity raise - even though I see they have reserved a below market price for the equity raise.
Comment by
Contrarian333 on Jan 23, 2018 4:18pm
I now believe that the equity dilution will be quite minimal and that the financing structure will involve the Pala facility, customer financing, and a small amount of equity. Should be very good for the share price.