Neo Lithium Corp V.NLC

RE:This new deal..

[neosceptic]

GAMOOD2 wrote: I don't see how this is a great deal for shareholders. Participates can buy 3,50 shares for 3.05? Am I missing something here?

And the real winner seems to be CATL

1. I do not think it is bad deal. Maybe not perfect, but $3.05 is close to fair price for bulk purchase, similar to wholesale price in retail, for example.

$3.50 is price that settled by exchanes between SHAREHOLDERS, using existing shares. NLC getting nothing out of it. To raise new cash, NLC would have to "PRINT" and sell new shares on open market. If NLC would announce even intention of new shares, the S/P would tumble.

Adding say extra million new shares to market every day over two weeks could bring share price to $1.50 - $2.50 hurting shareholderes and amount of cash raised. Supply/demand rule.

        2.  Those who with NLC for a long time, probably remember when NLC sold shares at (by memory) at $2.25 (approx) when s/p were rising just like now. Six month later - Li price (and all Li players shares) collapsed. Thank to that deal, NLC had enough $ to continue business as usual (drilling, PFS, etc.). Without that deal, most of us would exit with heavy losses.

We are not out of woods with COVID, nor have finacing deal, and EV sales are still better on  paper in form of projections. Having ample amount of cash to finish FS and complete all engineering and prep. work is a big deal.