RE:RE:NR Shares for Debteasy,
It's reasonable to expect ~$0.5 M for the expenditure related to the proxy saga during the last several months, which would include quite a few lawyers, financial advisers, and Kingsdale to organize the proxy solicitation. Now that has been behind us after the vote on 24 July, but bills will have to be paid. Hopefully that EO is busy paying his as well and not doing anything else to stir up the whole nest again at the expense of both sides.
Lawyer are not cheap (say on the average of about $2k/day. Similarly for high-level financial advisers. I would say about a couple of hundred $k would be for Kingsdale and the rest would be legal and financial advisers' fees.
I would say, it was a good move to arrange payment by issuing ~8.5Ms @ $0.055/s, so that they don't have to dig around for cash. 8.5M shares are miniscule compared to the OS of 478Ms. So, OS = 486.5Ms.
I would expect that the next move would be a PP to raise at least $5M (not $20M like what EO was trying to do) to be able to operate at a reasonable level for about ~1 year. This would include house-keeping items such as paying staff, doing some drilling as recommended by the 2018 Technical Report (the updated RE) to be able to paint a more rosy picture for the next RE in preparation for a sale/merger.
If they are able to divest some non-core properties like the two in Manitoba for reasonable price then AZX management would have some additional elbow room.
They potential participants for the new PP would not be unfamiliar to us. AEM will be there, ES will be there. A few more could be added, and they all line up at the feeding station.
Cheers,
GH
easycoder wrote: So how did they get 468K in debt? I wonder how much of that was owed to the legal team for fighting off EO? The rest probably general and admin. Anyway yes a +ve and as long time suffering shareholders we are surely not used to a paltry 8m shares being issued. Cynics would say we could be being set up for a cheap sale. What's next? a PP?