Sokoman Minerals Corp. V.SIC

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:ikehedges is not me on CEO

[AlwaysLong683]

BlueChipper2020 wrote: We do need to watch our funds and the short term key is we need to start moving our stock price higher as the year progresses so we do a larger raise with minimal dillution. 

Good statement.

My view is share dilution is in the eye of the beholder.

The last equity raise of $5M in gross proceed closed less than two months ago on March 21 for 0.40 per flow-thought unit with each unit consisting of 1 share plus 1 warrant (exercise price of 0.45 within the next 24 months).

If you felt this was fair value at the time of sale (or now in retrospect), then I wouldn't consider it share dilution as you would feel SIC got full value for the state of the company at the time.

if not, then I would view it as share dilution.

One bright spot is that, since the equity issue was done so recently, SIC may not have to do the next one for quite some time for the share price to rise. However, another thing to keep in mind is that Canada's inflation rate has been over 5% to date since the start of 2022 (with March 2022's number coming in at 6.7%), so monthly expenses could rise and require SIC to do the next equity raise sooner than when inflation was below 1% for most of 2021.