E3 Lithium Ltd. V.ETL

Selloff Monday!!!

[britishracer]

Another crappy Monday selloff

[MrInvest]

They keep diluting the shares with options and RSUs. Its killing the existing shareholders and depressing the share price. 

[PuerSimia]

The market doesn't like today's NR, specifically: "The Options are exercisable to acquire up to 1,738,000 common shares of the Company at a price of $1.58 per common share." That's a lot of cheap stock, and not far from the 12 month low. I don't think that was really necessary.

[MrInvest]

I agree with this comment. If they continue to issue stock at record low prices (or the option to do so at record low prices), that's going to significantly depress the stock price in the present/future. As a shareholder, this is my biggest beef with E3s management and that lies with the CFO.  It seems they are a little junior in my opinion. Again, great resource, not so great management.

[Millar]

I put an order @ 1.5 , then filled partially and unsettled yet, anybody has a clue .....

[MrInvest]

Bump up the bid price...it's currently under the market selling price. 

[Greatvac1]

I hate to give this company credit as it's been totally depressing for my bank account but if they've done anything right it's been to keep the outstanding shares low.  

[MrInvest]

I am trying not to be too critical here as I am long on this stock and have been for years. But given they are just in early engineering, there is significant forward share issuing to come. I modeled based on a $3.5 capital raise for $1B ($500 is equity and $500 debt).  If the equity raise is at $2.5 per share and a 20,000tonnes/year output, and $14,000/tonne of LMH. Tht puts the share price

[MrPeters]

Good post Mrinvest. The writing was on the wall last sept. when E3 was looking good rading up over 5 bucks with potential for highter. Then they put out 6M shares AT 3.55. when we were supposedly in good shape, so, why then? and then different times since, giving out low ball options last batch down to 1.70. Going to have their hands full getting this puppy perking again. And it is becoming

[Loughatorick]

Shorten the option expiration date and raise the strike price.

[MrInvest]

Yes... but too late now.  This is a amateur move by management. It lacks financial knowledge and harms the shareholders. I think the board needs to step up and remove certain management from the company. 

[DDGuy3040]

I totally agree. The PO at $3.5 killed it.  

[MrInvest]

Well the $3.5 equity raise seems like a good deal now to Management.  You would have to raise double the amount of shares now to get the same funding.  Thats my worrie, if they raise capital with equity soon, they will significantly dilute the existing shareholders.  It would be wise for Management to raise debt rather then equity now.  I do not think Management has a good