What is that loud sucking sound??!!...It is money going out of investors' pocket.
In the preliminary prospectus, the Co states that as of May 31,2023, there is a working capital deficit of $48 million due to operational costs and the Mexican debts. The W/C shortfall has blown up from Dec 31, 2022 at $8.7 million.
Reco is expected to receive $4,250,000 from the proceeds of the preliminary $5.0 million placement (subsequently increased to $6.5 million). The dealers that peddled the stock will be well rewarded with huge commissions and free warrants.
The Co says that the money raised might be used for working capital if needed, and not for the preparation of drill site for the Damar fold prospect. You can bet your money that they will keep raising money to stave off bankruptcy until they can't anymore.