FDR and the capital raise as status symbolCurrent bull board speculation about another financing is well timed. If FDR is about to move dramatically higher again, that might be the juncture at which to do it.
Granted, one could make a strong argument we do not need it. Unlike other explorers, we have over a million ounce “deposit” (the tailings) sitting at surface on our property, waiting to be processed. With all necessary permits already in place, I believe.
But that is a detail of our story not everyone in the market invests the time to learn. Their first step in assessing FDR may be to look at its cash balance. Or to look at the level of demand for its latest financing, if a recent one closed.
In that light, the decision to raise another few $ millions may be seen as a courtesy gesture – and not just to institutions who wish they had bought earlier. It is a confirmation to existing shareholders that FDR is growing ever-more respected in the sector. The best kind of status symbol.
Combine a new raise with a buyout of our vendor… or acquisition of additional adjacent property… and now people like me would be unreservedly delighted to see FDR issue more shares.
And what if a deal is already in the works? It may be nice to have the problem of the August financing. Namely, the only way it can look like we underpriced our offering is if our share price breaks out before the terms are announced.
Greed is good – but it shouldn’t blind us to the need sometimes for counter-intuitive moves to maximize profit from a play like Founders.