Maritime Resources Corp V.MAE

No Reverse Stock Split. Why?

[BadgerBob]

I think some of you posting may be missing one key fact.  MAE differs from most other
developers in that they don't have to go to the small investor market to raise capital when needed.
There is WAY too much institutional money already in this project for them to allow any serious dilution. Capex of $55-60 million is a not a lot of money when you can see a 1 year payback.
No, its more likely you will see some form of mezzanine financing from Sprott or Dundee, (say $50 million), then construction to get all the bugs out.  During construction expect further drilling to reduce the overall project risk and then Dundee and Sprott simply vend it off to another Newfoundland developer who can get accretive value from the production/infrastructure/land package.  So with leverage of $50 million, use an NPV of $250 and sell the equity value of $200 million at a discount of 30-40% making it about $135-140 million for the equity.  Guess what?  That
makes it approx. 30 cents a share. Gee that's where all the analysts peg the upside.

Forget the outstanding share situation and think with dollars like the serious players do.  Or maybe all this stupidity about an RSS is just the smart money shaking the tree. Don't fall out, take advantage of the opportunity. I am long recently. IMHO 100% in a year. Do your own DD.

[ggrellette]

Presently 240,000,000 + million shares o/s. That is alot of shares for a jr. exploration company to have. Sadly that is an anchor that will eventually have to be purged.

[BadgerBob]

This is a classic tree shaker. See my last post.  

[ggrellette]

Thks and yes I read it. Unfortunately I do not believe the institutions are in this stock. Institutions do not buy under a dollar. Now if you think market players in the form of houses like brokerage houses are institutions then your point is extremely valid. Players like Wexford and so on are NOT institutions but are money players and yes they will buy penny stocks because they manage penny stock

[MineNL1]

Curious,     Just pulled this from the corporate presentation, it states the amount of institutional investment vs retail.    As an investor RSS doesnt really concern me all that much.   If it was say restructuring for a bad reason I would be concerned but restructuring to create growth opportunities and realize the full potential of the investment is not really a

[BadgerBob]

GG,  Fair enough. I guess what we are disagreeing about is the definition of an institutional  investor.  Let's be clear. ES is an individual and not an institution because he holds positions for his own account.  2176423 Ontario is an institution and holds positions for its own account. Dundee Resources holds shares for its own account but is a subsidiary of Dundee

[ggrellette]

So in all the RSS will not benefit share holders unless it means they are going into production very shortly. The RSS as a jr. exploration play will be bad for share holders based on where you bought the stock. Now if there are 400 million verses 40 million shares outstanding it makes a huge difference when it comes to financing. Many financiers force companies to consolidate shares which will