My take on the new financing.Firstly, to all the people who are crying pump & dump. Just stop. I don't think you know how a pump & dump works. That is when you promote a company to dump shares of stock you ALREADY OWN!. You don't come in and buy shares at above the market price to just turn around and sell them at a loss. I mean c'mon have just a little common sense. A deal like this is done to get in at a lower level then where you think the shares will be trading in the future.
Secondly, I am curious about the timing of this raise. The company has been stating that the balance sheet was in very good shape to carry through all the way to the BFS. Is the dilution something to be thrilled about , no. But at least the deal was done at a premuim to the market. The full warrant is not the best either, but again at least it was only out 24 months and at a premium to the current price. That 24 month time frame is important in my opinion.
Lastly this is what I think it all means. The pilot plant is proving out nicely and with the current price of lithium markets this project is going have an absloutley huge NPV when the BFS is done. So Cypress was approached by a familiar company to get in before at a beneficial price KNOWING it was the last chance to do so. I think Cypress was willing to listen/accommodate them to get cash to speed up this process. I think this means a quicker time to a listing on a major exchange. I also thinks this raises the possibility of aquiring more land in the area. Most notably Spearmints property that has been talked about being spun off that borders Cypress' land. Spearmint has drilled that property and came out with some good results. The 24 month time on the warrants also has me thnking merger or acqusition from the bigger neighbor to the west. All in all if you are in junior development miners dilution is going to happen. Cypress has not been that bad on the share count front. So everyone sit tight, buckle up, as Cypress just told you that in the next 24 months, probably less you will be greatly rewarded.