Desert Mountain Energy Corp DMEHF

Speculation / The Swiss Factor?

[HeliumHigh]

I think we all have had a tough time comprehending the stock price movement for a while.  I have had a lot of thoughts about this and the company's pending raise that I just haven't had time to organize and share.  The stock price has been under even more pressure over the last few days.  I've been struggling to reconcile this with the company's current position, until I connected some dots in my mind:

I believe it has been said that DME's largest stockholders include some European/Swiss family offices.  In case you somehow missed it, Credit Swiss and the Swiss banking system has been in some unprecedented turmoil over the last week.  I could see this not only creating pressures to sell/trim some holdings accross the board to improve liquidity and reduce risk, but also to pursue some potentially unprecedented financial opportunities that may have been come into existence in Switzerland recently.  This is admittedly speculation on my part, but those are most logical dots I can connect to the recent stock price changes (with the second set of dots being potential financing purchasers trying to put even more pressure on the stock price to get an even better deal than the current terms offer, which seems mindboggling).  

Full disclosure:  I sold some other holdings to further significantly increase my position in DME today around the US$1.286 price .  In a few months, this will either be revealed to be a very foolish move or an amazing opportunity.  Time will tell...    

DME really needs to get this financing closed - and I am sure they are doing everything they can in the face of the general market challenges right now.  

Good luck all.

HH

[Bertie20]

Having looked over the short form prospectus, my impression is that DME are just looking to get this thing over the line, and will take what they can get. Previously they were targeting around $20m. Now  language has been added indicating a minimum of $10m (the $20m figure is still there, and so is the over allotment as well, admittedly). News tomorrow perhaps?

[HeliumHigh]

I certainly hope you are right, Bertie - even if they have an initial close on less than the full $20M.  They really need to get this financing done - both to relieve the pressure on the stock price and more importantly to timely execute on their expansion plans.   The timing of this financing seemingly really couldn't be worse.  I think DME believed, which is quite

[Bertie20]

Fantastic analysis as always HH. Personally, I'd still like them to continue to do occasional interviews--it's great as a shareholder to be kept informed--but I'd agree that it's definitely been a case of diminishing returns for quite some time. Those CBS videos in particular were bloody awful.

[HeliumHigh]

Thanks, Bertie - I certainly appreciate the thoughts and perspective you share as well.  Thank you for taking the time to do so.  While I'm only a frequent lurker over at the CEO board, I always enjoy reading your many insightful posts over there too.

[Bertie20]

I just noticed another intriguing element in this updated prospectus. It speaks about the 6% fee for the arranger, but then goes on to say: "with the exception of gross proceeds raised and received by the Company in the Offering from any purchasers that settle their purchase of Units directly with the Company (the “Direct Settlement List”)". This element was not included in the previous

[HeliumHigh]

Great spot, Bertie.  I guess any new interested purchaser in the offering should be reaching out to the company directly rather than through Beacon (to save the company the 6%). I thought about reaching out to the company to participate in the offering but bought OTC shares because I read that others had reached out to Beacon and were told the company that the offering was already

[Buyhigheatchips]

Agree on the interviews, HH. Market wants results fit for NRs and SEDAR.  Hopefully as long as they show over the next three months that the plant can reach most of its potential we'll be okay. Some good numbers to project from will be very welcome.  Quite the rough patch though and a little off my "conservative" $5 by March 2023 mental model. A banking crisis during a

[Buyhigheatchips]

By the way, in case anyone misses groundpounder I think I found him on the EVNI board. Oy.

[Buyhigheatchips]

Correct me if I'm wrong but there's a good chance that the lower bound of thr PP has already been met (funds transferred) given how long it's been open.

[Pineapplehero]

It may seem wrong to do paid interviews right now. But further down the line, once the production is in full swing, potential investors will be reviewing all of the recordings of those interviews. So it's not such a bad deal.  In essence DME are trying to grow their assets & potential (AKA grow the company) as opposed to the SP, which will look after itself in due course.