RE:RE:RE:RE:Good Move Up on Double Average Volume Nope. Read the MD&A from July.
This is not a new thing, it has been known for 3 years since they originally got the property from Spectrum. Part of the agreement was for DEFN to issue new shares equalling 49% of the existing outstanding shares as of November 22, 2021. So, with 80M shares outstanding, it will be around 39.4M shares just issued and given to Spectrum shareholders without any capital raise.
The good news is that DEFN will have 100% ownership and control of the property, and the 39M shares issued will not be tradeable until March 22, 2022. The obvious bad news is that they go to 120M shares outstanding without having any capital raise associated with the issuance.
THAT is why, IMO, the stock has gone nowhere ever since the HC Wainwright placement.
And that is why they REALLY NEED to get the PEA done and published at least a few weeks before November 22, so that the market and key players can have time to digest the PEA and make investment decisions.
If the PEA shows a NPV of, say, $1.5 billion over a 15 year mine life, then even 150M shares outstanding should not make a difference - which is about how many shares they will probably have outstanding by March 2022 anyway, since they will definitely need another capital raise shortly, and they still have about 25 million warrants outstanding.