Settle down and take a deep breath1. The financing announced on a Monday....hmm.... tells me it was sold out by LAST Friday with the firm commitment of all shares to be sold. Demand at whatever price is there for a +7% bump in the equity of the company.
2. The financing comes shortly after the announcement of the performance #'s of the trial. Dont think that this is the last news to come..... very typical is to do a financing and then have a string of announcements ready to go to reward those that put their money up. I doubled down this AM at 2.70 US..... might have been a little early, but am happy with the position.
3. The company is going to have to negotiate to get the ACTUAL plant built. Terms are much easier to negotiate when you have some horsepower in the bank. I think its a great strategy.
4. I will be very interested to see how many of the insiders picked up shares in the offering. In so many companies these days, insiders do very little buying....they just award themselves more options. In the case of E3, one of the factors influencing me to buy was the insider commitment when for the most part they exercised options and sold almost none....thats faith brother!
5. Strategically, I am impressed as to how they are going about their business. I think this financing timing is pretty good. They could not have done this before the trial results or the resource estimate....nor with the stock price at $5. With the announcement of results, the way was clear to move forward with the financing.
6. As far as "bag holders".... giving tags before the dust has settled and we see where the share price is in a week or so, is just folks who hadnt thought this thru, and expected the upward share price curve to continue forever...... thats not real. The rubber will now have to hit the road as we move towards the FID...... and who is paying for it and how...... sell a royalty stream, debt financing, share sale.....all of these will be on the table.
5. If you want to be part of a financing, you need to show interest and commitment long before its announced.
GLTA