Post by
Bertie20 on Apr 07, 2021 5:07pm
One down. Nine to go
In October last year DME raised C$13.1m (not including costs) at $1.60 per share. This cash-raising included the issue of 8,203,062 warrants, worth C$2/share, which the company could trigger if the share price remained above C$3.50/share for ten consecutive days. We have now passed day one--if we get to day ten, the company can trigger the warrants and raise C$16.4m*, with no associated costs or fees. That is sufficient to take the company to first production, with no need for further dilution. For a resources company to achieve this with fewer than 80m shares in issue is outstanding, and highly unusual. Nine days and counting....
* Just on a side note, the ".4m" in the C$16.4m that will be raised if the warrants are triggered may seem like little more than a rounding error. However, it's worth noting that that amount (C$0.4m) is actually roughly equivalent to the cost of one exploration well, which puts into context the amounts we're talking about here and how well-financed the company currently is (it presently has over C$13m in the bank, before any warrants are triggered).
Comment by
Koskadelli on Apr 08, 2021 10:21am
It can't be emphasized enough how huge of a catalyst this could be. When I outlined my buy-in strategy, I planned to wait to see the results of the next 3 wells because I figured they'd need to dilute the pool to move forward after the initial $13M was spent. Seeing that they may actually be able to trigger warrants and get to full production... holy cow.
Comment by
Bertie20 on Apr 08, 2021 10:50am
And the share price continues to rise! I must confess that I just sold a small number of my shares to get back my original stake (though I still retain 93% of my original holding). My wife wants a new bathroom... Anyhow, that's it from me. I'm not selling a single more share until we hit Robert Rohlfing's sale price of $30/share.
Comment by
Boscoe2015 on Apr 08, 2021 11:07am
$30 Canadian or US currency. lol. Glta.
Comment by
GoldenArm on Apr 08, 2021 11:09am
Hey Bertie, I was going to sell shares as well but I got busy with work and now very glad I didn't. Day 1 is here and gone and if the warrants get triggered there may be a small dip. After that $50/shr buyout would be nice. My wife is a Kitchen and Bath designer so if you're east to Toronto she can help after this stupid lockdown #3 ends.
Comment by
Buyhigheatchips on Apr 08, 2021 11:14am
Honestly may not be much of a dip depending on news. How long to drill three wells once they start? Two weeks each?
Comment by
Bertie20 on Apr 13, 2021 5:13pm
Halfway there! 5 days down; five to go. Some newsflow would help a lot though. Where's that drilling permit?
Comment by
TiredofWating on Apr 14, 2021 2:17pm
Any sense of what will happen to share price when the warrents get triggered or in the next few days leading up to it?
Comment by
piperman60 on Apr 14, 2021 2:30pm
Good question. I think there will be some that flood the market and it will be a nice chance to buy the dip. It depends if these warrants are in friendly hands or institutions just looking to make a buck.
Comment by
Boscoe2015 on Apr 14, 2021 2:42pm
Timely positive news releases may negate that influx of shares. Jmo.
Comment by
Buyhigheatchips on Apr 14, 2021 2:57pm
I wouldn't be surprised if they announce news along with the warrant acceleration.