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Bullboard - Stock Discussion Forum Aston Bay Holdings Ltd V.BAY

Alternate Symbol(s):  ATBHF

Aston Bay Holdings Ltd. is a Canada-based mineral exploration company exploring high-grade critical and precious metal deposits. It is engaged in exploring the Storm Copper Property and Cu-Ag-Zn-Co Epworth Property in Nunavut, and the high-grade Buckingham Gold Vein in central Virginia. It is also in advanced stages of negotiation on other lands with high-grade critical metals potential in... see more

TSXV:BAY - Post Discussion

Aston Bay Holdings Ltd > Financing 101 - Down Round - No Bueno
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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 21, 2023 11:24am
Bears repeating. 
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 traps7 on Feb 22, 2023 12:06pm
Patricia, buying schooor a coffee for lunch.. Recent Trades - All 4 today More trades... Time ET Ex Price Change Volume Buyer Seller Markers 11:46:21 M 0.03   30 7 TD Sec 14 Virtu ITG   10:36:35 A ...more  
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 9:41am
Exactly 
Comment by schocor on Mar 06, 2023 9:50am
Financing is your next news at Aston. 
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