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Otso Gold Corp. V.OTSO

Otso Gold Corp is a gold mining company. The company's only segment being acquisition and exploration of gold resource properties. Geographically, it has a presence in the Americas and Europe.


TSXV:OTSO - Post by User

Comment by rborhion May 12, 2020 12:05pm
104 Views
Post# 31017266

RE:Equity Finamcing

RE:Equity FinamcingI agree on some of the downsides with these financings, but they did need to raise money and if there really is a gold bull market for a few years and the mine goes according to plan, there is still good upside.  There is high insider ownership and if they start building a cash position at some point, maybe they start a share buyback.  But agree don't like the potential dilution here.  If I understand right this latest financing means the drawdowns will be tied to the share price at that time, so a higher share price would mean less dilution.  Plus the warrants would also bring in more cash to the company, again hopefully at a higher share price.
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