This week's actionThat was an interesting day for GXS. The stock is massively diluted, and the share price ends up very strong on very high volume. Clearly, some strong hands wanted to be in. I wonder whether there is something more to it then what is currently public…
In any case, with $11 / $12 million in the bank, exploration work can intensify. There is still a lot of property to drill.
We must not forget that the company has achieved a lot on a tight budget. These are the financings in the last 4 years: 2017: 4.46m, 2018: 2.8m, 2019: 8.8m, 2020: 6.6m, Total: 22.66m.
I know that we are frustrated by the muted share price, as these financing were little, if any, accretive to shareholders. But we have to recognise that on the whole the company has not been spending this money without showing results (with the exception at the attempt at production back in 2015/16).
There is one important opportunity that the share consolidation will bring. Many funds and investors will not buy stocks in the low cents. With the expected share price above $1.00, and the company showing results and quickly advancing towards development decision, the pool of investors will grow.