Frontier Lithium Inc V.FL

On going dilution

[replicator]

Take-a-ways of dilution as per Investopedia :

Dilution is the reduction in shareholders' equity positions due to the issuance or creation of new shares.

Dilution also reduces a company's earnings per share (EPS), which can have a negative impact on share prices.

Dilution can occur when a firm raises additional equity capital, though existing shareholders are usually disadvantaged.

This is never a winning situation for us the shareholders.

[Raff007]

You are right replicator - this is a shareholder dilution of the stock - What do you think would of been FL's other options? To raise capital its one of the way to do so without having any debt - Was the timing right ? I'm not behind the closed door of the Directors. But at a glance considering we just finished drilling....why not wait for the results?  Like I said......we weren'

[sfct1978]

Giving away our money at this low of a share price is frustrating to me. We all know based on all these great drill results that the delayed PFS is going to increase the share price in a few months. Why couldn't this have waited until after that to give away less shares for the same $20 million that we apparently desperately need in addition to the $16 million already in the bank?

[FrankCowperwood]

Remember management and board here are the largest shareholders. Dilution is less than 10%, but on top of the money that will get us to DFS, they open relationships with partners who can raise FL hundreds of millions from the best institutional investors at much higher price. It's a wise strategic move!

[sfct1978]

Yes, and management will have an easier time being able to keep their same percentages of ownership thru cheap options and warrants.  If we, the common shareholder, want to keep our same percentage of ownership, we have to buy in the open market at a higher price... Absolutely agree that having a big time bank on our side is good, I just think the timing is horrible. Oh, wasn't it Goldman

[Raff007]

There is somethings that we dont know.....Yes, you are right about Goldman that publish a negative report on the lithium industry......Why this change of mind? Why partner up with FL? Why now? For my sake the only thing shaky about this bought deal is timing....Why now ? Like I said in an earlier post - we just finished the last phase drilling - why not just wait for the results - and then go to

[MimieMaumie]

Ladies!!  Please calm down...  All is well... The sun will continue to rise... This is a smart move... Remember, The Walker family is a huge shareholder!!

[qwerty22]

I've been wondering exactly what the $20 mil is needed for. It's not enough for the post-PFS work, they'll need more. I don't know whether it's a cautious move with market turmoil ahead of us or maybe it gives them added strength for future negotiations, my first thought was more cynical, are they handing out cheap stock to friends and themselves. Anybody any thoughts why

[Margin321]

sfct1978: you write: Giving away our money at this low of a share price is frustrating to me. We are not giving anything away. There are more shares but there is an additional $20 million in cash which was pain for at very close to the initial share cost.  So each new share has a smaller fraction of original company but also a fraction of that $20 million. It depends om how wisely they use

[sfct1978]

In a few months I fully expect the share price to be higher due to (hopefully) increasing the size of the resource from all of the drilling and updating the price per ton used in the previous NPV.  So if this deal had waited a few more months we could have gotten the $20 million for a lot less shares, meaning current shareholders would not have lost as much, there would be less outstanding

[MimieMaumie]

People: Lets' stop whining and move forward... This move was necesary to secure sufficient funds given all the talk about a recession etc... Having said that, we cannot get the sh.t back into the horse... Its done, over!! Respectfully HJK

[ridethewinners]

The keys to this are going to be whether they have required ongoing research coverage from RBC and/or GS. They did not for BMO last timne around and that was a big mistake. This company is still very small from mkt cap perspective, and not owned or even heard of for most investors. The company has not been willing to put effort into a better profile, that also has to change.    I would

[ITSUP2ME]

I've been holding FL for a long time now but my thoughts exactly...We don't need another PGM...

[Margin321]

I disagree with the statement that "capital raises are never a winning situation for shareholders". Why do you think they call it "capital markets". They allow companies to grow without adding debt that they could not service. As long as the company is growing and the successive raises are at higher and higher prices, the initial stock holders are advantages, not disadvantaged