TSXV:PQE.H - Post by User
Post by
Teakboison Sep 04, 2019 11:42am
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Post# 30094420
New financing.......
New financing.......There's no question that the company must continue to do financings in order to operate. Everyone should get that. The question remains....how much dilution is going to be required. The new financing just announced is revealing. It is a small amount in dollars and shares. Not a lot of dilution in that. Which brings up another question.....is it a small amount because they were unable to secure a larger amount or was it done small intentionally?
Its a one year convertible debenture at 15 cents per share. If the company cannot come up with $400K now, how could it afford to pay off the loan in 1 year? They dont intend to pay off the loan. They know very well that CD's like this one are vulture financing, as the issuers never have any intention of waiting for the payoff date. 4 months from now those shares will hit the market and the CD will be closed out.
It would appear that they need this money to get to BlueMetals first half of September.