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Defense Metals Corp V.DEFN

Alternate Symbol(s):  DFMTF

Defense Metals Corp. is a Canada-based mineral exploration and development company. The Company is focused on the development of its 100% owned Wicheeda Project, which is located on the traditional territory of the McLeod Lake Indian Band in British Columbia, Canada. The Wicheeda Project consists of 12 mineral claims covering an area of approximately 8,301 hectares (20,534 acres) located 80 kilometers northeast of the city of Prince George, British Columbia, Canada. Its rare-earth elements project delivers critical metals commonly used in the defense and national security industries, and in the production of green energy technologies.


TSXV:DEFN - Post by User

Comment by Maxmoeon Sep 09, 2021 3:52pm
100 Views
Post# 33834885

RE:RE:RE:RE:RE:Good Move Up on Double Average Volume

RE:RE:RE:RE:RE:Good Move Up on Double Average Volume That has to be, by far, the worst deal I've ever read. If they agreed to issue 50% of outstanding shares 3 years in advance, they are uninvestable to everyone except spectrum. Why would I invest $1 if I know spectrum gets half of that for free? It's so absurdly stupid I have to question whether it's true. I could see a large share issuance 3 years in the future as a final milestone but such an open ended theoretically infinite payment, sorry, 50% of infinite! , doesn't make sense. Egregious, but more sensible would be 50% of shares outstanding at the time the agreement was signed. Ie a known, fixed quantity. To take the opposite extreme, I could borrow the entire market cap of $20 million, buy back and cancel all the shares except the 100 shares I own, then I'd owe spectrum 50 shares? I could structure the same using a holdco, options, trusts, etc. It makes no sense either way.  Do you have a source document, original term sheet or something? 
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