Post by
schocor on Feb 10, 2023 4:27pm
Financing 101 - Down Round - No Bueno
Aston is a junior mining company. Like almost all junior mining comapnies, ASton needs to be able to riase money in order to funds its ongoing operations. Why? Because like almost all junior mining comapnies, Aston has no revenues.
Now Aston needs to raise money fairly quickly in my opinion. Why? Well becasue they haev none and actually owe their CEO more than $500k because HE has been loaning them money to stay afloat. Odd if yuo ask me.
So it shoudl be as easy as giong to the market, issuing more shares and getting yuor money right? Not so. The issue here is that the sahre price is LOWER than the last time they raised money; this is ever after the "excellent", "world class" drill results from last year - by the way I agree with the market and didnt think they were that great.
So if yuo haev a down round of financing, everybody that invested EARLY has lost money. They wodul haev been better to NOT invest and to WAIT. This is the issue facing ASton now. Nobody wants to invest MORE NOW.
In the Tech world (as on teh TV show Silicon Valley) a down round of financing spells the end for a comapny's equity holders. Its not quite that serious in mining but the song remains the same; why woudl I give yuo more to invest when you have not produced a return on teh money I already gave you.
Ignore financing requirements at your own peril; new money is teh lifeblood of junionr mining and a down round is NOT a good sign.
The question now comes......how to get the share price up?
P.S - I am not bashing - I am actually long ASton Bay - but i am not about to start pimping a stock just becasue I own it
Comment by
schocor on Feb 22, 2023 11:07am
Financing is your next news event. Price will be key in determining how much of a successs it was for AW1; the Size fo teh financing is what is important to shareholders of Aston.
Comment by
schocor on Feb 22, 2023 12:56pm
2000 shares traded for $60. Can yuo even buy two coffee's for $60 in Canada today? While I might not know how much coffee costs; I do know that $60 worth of trades is negligible EVEN in pumperville.
Comment by
schocor on Mar 06, 2023 9:50am
Financing is your next news at Aston.