RE:RE:Very close to bankruptcy,I.m.o!!!There was a recent cash infusion - $2.0M - 6,250,000 share at $.32 sale to Dundee. They are NOT close to bankruptcy. They laid off almost all staff, so there burn rate is low if they just sit on the mill/mine until they find additional funding to continue build. Even at current cobalt price of $14-15 US their mill/mine should be profitable. They have a high cobalt concentration and per original Feasibility Study (FS) their cost was to be around $5 to produce cobalt. Revised Feasibility Study was not released due to Jervois proposal - once released, assuming Jervois gets out of the way, I expect SP to increase and eCobalt should be able to find additional financing. However, the eCobalt/Jervoisee merger agreement has a $3.0M Canadian penalty if deal does not go through, so that will burn up eCobalt's cash.
When the Jervoice proposal was made, Jervois had 223.263M shares outstnding, currently at $.24 Australian - $.168 US, resulting in about $53.58M Australian - $37.51M US at .70/100 exchange. eCobalt currently has 166.4M shares outstanding, at .20 US market cap is about $33,820,000. 1.65 Jervoise shares for each eCobalt, means eCobalt shareholders are getting about $0.277 US for their shares.
However, I do not know how the M2 Cobalt will affect these numbers - but the transaction summary states $17.40 M Australian - $12.18 US with M2 Cobalt shareholders to get 22.1% of Jervoise, with Jervoise shareholders at 77.9% for Jervoise shareholders. This was to have closed in 04/2019, so pre-Jervoise/eCobalt agreement shares outstanding number. How many Jervoise shares now outstanding post M2 Cobalt and how many shares will be outstanding post eCobalt closing? What percent of Jervoice will eCobalt shareholders have?
Board to be 3 Jervoise, 2 eCobalt & 1 M2 Cobalt, with Board chair and CEO from Jervoice.
All of the above, with certainty and clarification should already have been provided to current eCobalt shareholders. I expect that all large shareholders already have this information so it appears eCobalt is not concerned whether retail shareholders get the information they need to vote. I expect this deal is in the best of certain large eCobalt shareholders, but as for other shareholders, it is hard see much value. By agreeing to a $3.0 M Canadian penalty if they do not go through merger, the existing management/Boardf/large shareholders have screw e
Cobalt if it does not go through with deal.