RE:RE:RE:RE:Oct. 2022 Argonne Ntl Laboratory: I am not involved in finance so have just general thoughts.
I was surprised (shocked) at how low the new shares were valued.
I had just bought 5,000 E3 shares @ $ 4 plus on Friday, so took quite a hit
on Monday with the announcement of the new $ 3.55 share issuance.
I note that 2 of the 5 E3 directors have a finance background and
assume that they would have given green light to enter into
the new funding agreement and would be aware of the subscription price.
I also understand that a start-up firm has great difficulty raising funds
and that E3 wants to begin commercial operations as soon as possible
before more lithium supply comes on stream. The faster the plant is built,
the shorter the pay-back period on the capital cost of the plant. The funds
from the underwriters will greatly expedite the construction process. The
$ 3.55 stock value assigned may be the best that E3 could negotiate.
I just don't know.
I read where similar DLE operations are being proposed and am
aware of the large lithium find last week in Nevada. So lithium prices
may well decrease in the next few years. So the faster the new plant
comes on stream, the greater chance to obtain maximum value for
the lithium produced......
There is no doubt that the shorters made out like thieves. How did they
know to attack E3 . Were some of the shorters affiliated with the underwriting
group ?
I would think that the Ontario Securities Commission would
be interested in seeing if any rules had been broken.
Lastly, I would assume that many of E3 management would
also be suffering from the reduction in the value of their E3 share holdings.