Nemaska Lithium Inc NMKEF

Nemaska Lithium Inc is a Canada based lithium company. It is engaged in exploring and evaluating lithium properties and processing of spodumene into lithium compounds in Quebec, Canada. The company supplies lithium hydroxide and lithium carbonate to the lithium battery industry used in electric vehicles, cell phones, tablets, and other consumer products.

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Nemaska Lithium Inc > Assuming that NMX stays in the 22 cent to 26 cent range over

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Comment by mick1888on Aug 10, 2019 5:29pm

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Post# 30015084

RE:RE:RE:RE:Assuming that NMX stays in the 22 cent to 26 cent range over

Not bad indeed CanadaC - in particular that they (Pallinghurst) significantly de risk the project for all of us existing shareholders too.... ;-)

CanadaCoin wrote:

nickto wrote: Offer at 25 cents no doubt on that, in any case Pallinghurst will hold at least 50% ... the new boss

I agree Nickto!

Current share base - 900 Million shares
Pallinghurst Placement - 800 Million shares
Rights Offering up to - 1,600 Million shares
Total Outstanding Share base - 3,300 Million shares

Pallinghurst will obviously exercise their Rights for an additional 711 Million shares. And they will probably end up with another 200 Million shares due to non participation of the part of retail shareholders in the Rights Offering. Putting their [Pallinghurst] holdings at 1.711 Billion shares, which gets them over the 50% threshold and sole control of the company.

And guess how much Pallinghurst has to lay out in cash to get this majority share?

Just $428 Million.

They get to buy half of a $2.3 Billion project for $428M! Sure there is still risk in this play, but their $428M cash infusion [and the project being 1/3 built already], reduces the risk previous shareholders have had to endure to this point. Not bad eh? :-)