Nemaska Lithium Inc NMKEF

Time to reassess: Massive dilution is on the horizon!

[Smokerama]

I have made previous comments, many tongue in cheek... 

However, I did anticipate a 50 to 60 cent range. I am now revising this unprofessional and somewhat useless guidance to 25 to 30 cents. 

Quebec company risk: This comment is not a knock against Canadians or Quebecers. Rather, it is an accurate reflection that many Quebec companies lack sophistication and transparency. There was a recent 2 week construction holiday which would have halted work on the project for 2 weeks. However, no mention of this was ever disclosed to shareholders. This is just one example... 

Dilution: The entities which financed the project and the Directors and Officers who receive share options will be seeking the opportunity to participate in another round shares and options issued below current market pricing. Thus, I would expect another 300 million shares to be issued at or around 40 to 50 cents a share, possibly lower. This will also give the company a reason to issue another 50 million shares or so in options, priced at a similar level. 

Project execution risk: Issues will arise that will lead to the requirement of further financing. This almost always happens in a project of this magnitude. 

These companies are about making money for Directors and Officers and the financing entities. The retail shareholder is irrelevant. Once you accept this fact as a retail shareholder, then you can prudently invest your funds while assessing the risk.