Implications of flow through private placementI have some thoughts about yesterday's private placement NR I'd like to share for consideration and response by others.
1. Obviously no one likes the share dilution, especially at this share price, but we have secured nearly $7 million. I am thinking and will try to find out if this is all the additional raise that will be needed for 2025.
2. A major concern I've heard in private conversation (and on this board) is fear of reverse split or share consolidation being demanded by banks in order to underwrite the next (this) capital raise. Unless we have some other NR coming down the pipe, it appears now we have secured the raise without such a move. Is there any particular reason now going forward to expect such a reverse split? It does not seem obvious at all to me.
3. I have considered the detail provided that AEM participated in this raise, I believe to keep their holdings at the 9.9 or 10% level if my math is decent. I am seeing this as a real positive for Wallbridge. If AEM presently felt Wallbridge was not going to be worthwhile going forward, why would it offer additional capital to chase bad money with good?
Furthermore, if they felt Wallbridge was that vulnerable, why wouldn't they again not participate in the raise, let the company sink into bankruptcy, and then buy it for essentially nothing.
To my view, AEM sees its prior investment in Wallbridge as worth defending and the company worth continuing to support. Thoughtful comments from others? Thanks in advance for your input-tndl