It is hard to figure out why VMS went to the financial markets to raise $3million and to further dilute existing shareholders ownership (and their interest in the Reed mine and NAN) when there does not seem to be any need for money.
the April 2015 presentatation shows VMS has lots of cash ($3.8 million) and provides no guidance on VMS's financial expenditure plans.
The most recent financial satements shows working capital of $4.5 million and no debt, other than the loan from HBM, which is to be repaid out of Reed cash flow.
So, why dilute the current shareholders' interest and raise money, for no apparent reason./?
One notes that not only were the new shares issued at the current bargain price but that the costs paid for commissions and finders fees total 12% of the $3million. it seems expensive.
Marquest Capital Markets and Secutor Capital Management Corporation received these fees. one might wonder whether the new share funding was motivated to help these finders earn fees.
Curious, to say the least.