RE:RHC financing " In consideration for the grant of the facility, the Company has agreed to pay the lender a 5% structuring fee and to issue share purchase warrants equal to 9.90% of the issued share capital of the Company at closing, each such warrant exercisable into one common share at a price of CAD $0.35 per common share for a three-year period."
That is also in the press release. It does not exactly sync with the other language you quoted correctly. The lender is a private merchant bank in London that specializes in loans to energy companies and often takes equity stake in addition to interest. Look up the deal they did with Southern Company out of Calgary in April where they got 150 million shares and equal number of warrants on a 6 million dollar private placement. Let's just say that they are are on the high cost, high risk edge of the capital market.
I am not a basher. Believe it or not. There are tons of RHC pumpers out there. I am an investor with eyes open urging a little caution and a limited overall spot in a balanced portfolio. If successful RHC could be very profitable, even with a modest position. I hope that happens. But I will also be fine if being under financed and taking some technical risks trips them up. I have never shorted a stock. I take long positions and hold long term as well. I do put some of my money in high risk high reward situations. But not a lot of my money. Helium is a interesting area with huge potential and I want to participate. I have several high risk investments in the space including RHC which I like because it is primary helium in a favorable jurisdiction and because of huge Nazare discovery, yet to be fully proven. I am trying to judge relative risk here versus my other helium investments. I appreciate all positive comments about RHC and read them very carefully. Take or leave my own comments but nothing has been untrue and stock has dropped by 2/3 since I started buying so my caution has not been entirely unwarranted. Recently I have been buying DME instead of RHC. And Kelli Lake is on their board of directors in kind of a sweetheart deal. Think about that for a minute. I will be very disappointed if one (or more) of my three helium picks does not make it. But all of them proving hugely successful also seems a stretch. But (final comment) what is the option to invest in helium - just the huge oil and gas majors extracting it from natural gas or the huge gas suppliers cutting deal to aquire helium supply. Or private equity players like American Helium and some of the companies reviving hugoton helium rich gas, that I have no way of participating in. Good luck to all.