PRESENTATION YESTERDAYThanks RM for reminding us of these relevant key points. I was seriously gettting annoyed by the macho contest of previous posts.
Of course these great perspectives are not reflected in the share price, we all saw that. Which brings me to a key point absent from your list. Indeed, it was also casually stated that: "
Warrants expire next month."
Clearly these millions of warrants are holding the share price down. Someone holding such warrants does not have to buy stocks at market price to have leverage. Someone not holding such warrants will hold his purchase of stocks until warrants are dealt with. This is going on for months, despite great perspectives.
So warrants will be out of the way "
next month", in a way (expiration) or another (exercise). Then the stock will be allowed to reflect true value.
The warrants of course are still in the way because NL likely needs the fresh money to enter into commercialization, continue research, participate in potential joint ventures. That's OK, these are legitimate uses of new funding.
But, the warrants might not be in the proper hands: property of initial financial partners looking to make a quick buck, instead of the new long-term industrial partners knocking at the door.
It could be that:
- NL will let these warrants expire and then let the stock go up to a more reasonable level (i.e. 30-35c) before getting a capital influx from new industrial partners;
- NL does not need to issue new stocks after all, revenues finally paying for new activities.
The warrants matter is key, both to the grumpy crowd staring at the share price and to the hopefuls amazed at NL bright future.