Critical Elements Lithium Corp V.CRE

understanding the deal, more questions than answers for me

[Longalways]

Do I understand well?

1,75$ is for one share plus a warrant to buy half a share at 2,50$

So if the buyer exercises the warrant he will have 1,5 share at at average price of 2,83$

Yes it would increase dilution if warrants are exercised.

But doesn't it mean that the investor has the perspective that even at 2,83$ it is a deal. 

This investor should expect to at least have a final exit price of double 5,66$ ?

So why would this be bad news? Except for short term traders

In a globe and mail article they explain that warrants are good if you invest in a bullish market.
Why would this be a bad news for us if you are here on the long run?

Thanks for you help

[Longalways]

Sorry everyone ,just read again my post and reaise my grade school math mistake replace 2,83 $ by 2.125$ and 5.66 $ by 4,25$, 

[tinker901]

Not quite. It would come out to an average of 2 dollars per share. Let's say you buy 10 shares at 1.75. Your cost is 17.50 Later you exercise your 10 warrants to buy 5 shares at 2.50 a piece. Your cost is 12,50 So for 30 dollars you have 15 shares at 2 bucks a piece. Get it ?

[Longalways]

Yes ,  got it, 

[Longalways]

So their price is 2 bucks if they exercice their warrants. Market noticed the 1.75$ and missed the 2$ 2$ shoud be the market value now as minimum. And those investors would not buy as much $$$ without some good expectations of profit which to me should point to SP increase at least to 4$ to 6$ within 24 months ans probably faster with permit. So new money  at the right price is not bad to

[monkeyhere171]

The issue is the timing of this offering!!! Why filling the pockets of banks as same could have been done a month later at $2.50 with less dilution? The money they got are peanuts compared to what is needed to start construction! Why put a break on the run up? We just started to be noticed and gained momentum and management throws anchor stalling the ship!!

[Longalways]

Daily market transactions are about 0 ,12% of all shares  The  transaction is for over 10% , of new money , share price is value of the company not cash money they can use. Why not wait until 2,50$ ? , there was no guarantee they would get that price. Question of why now is then very appropriate. Maybe good news is coming closer than we know and this news need cash .For what purpose

[HuntNGather]

I take some comfort knowing that Cantor Fitzgerald is a Bay Street big deal.  They are a Wall Street big deal.  They are going to bring some US eyes to the company and while it totally sucks that we have to see a financing that kneecaps the share price, I like the One-Half warrant a significant premium to where we were even yesterday. That signals to me that they believe there will be

[rockhound01]

Great post HuntNGather. I was not impressed to say the least after reading the news yesterday afternoon but after understanding how the deal was structured etc I am more than happy now. As you've stated the money now going into this deal isn't looking for doubles but multiples. Lots of new blood and lots of new eyes on the stock because of the financing size.