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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@nicholaslepanjust a quick strategy question for junior mining. When is a private placement a positive sign for a junior and when it is bad? I understand dilution (bad) then also management's ability to raise capital to advance the project (good) but are there any other ways to assess whether a financing is consider a plus or minus for a company's stock? #financing
@MiningBookGuy@nicholaslepan RE: https://ceo.ca/index?0c94a6089372 - good questions. needs to be done on a case-by-case basis.
Raising money with NO warrants at a premium to market price is almost always good (possible negative would be raising too much relative to market cap). Nothing inherently wrong with warrants. But too many long-dated full warrants is a red flag for sure. Too many raisings in a short period of time is a red flag. You want to know where the money is going.
You also want to know who is participating in a #financing. You might see full warrants...but they are going to a new, strategic investor, and it's not blowing up the #sharestructure. So that can definitely be a positive. Just some quick thoughts for you. #newbies
anonymousIts much more easier for a company to close a financing below the current market price. Its simply another kicker to get someone involved as the investor will already be "up" on a position. You will see resource companies do this a lot, especially with warrants as another kicker. Obviously the market will not like this, but if a company knows where their shares are and have support, the drop can be contained. #financing
@oljenksAnyone with a little more experience care to share thoughts on the bought deal financing at 25 cents (below current share price) and how the market reacts to financing below market price. Is it typical for the price to drop to the financing level? Asking in regards to $N but general thoughts are appreciated. Thanks. #financing
@nicholaslepanJust another quick question about #financing, when warrants are issued alongside common shares, when those warrants are exercised do they result in new shares being issued from the treasury, more outstanding shares, or are they set aside, or do smart people just factor those in on a good project for the total outstanding shares?
@marketwiredPuma Exploration closes the asset purchase agreement with Votorantim Metals Canada Inc. @marketwired/puma-exploration-closes-the-asset-purchase-agreement$PUM$PUMA The company acquired approximately 67.9% beneficial interest in the Murray Brook zinc-lead-copper-silver volcanogenic massive sulphide (VMS) deposit located in the Bathurst mining camp of New Brunswick. The company has also closed $555,000 and issued 7,928,569 units at the price of $0.07 per unit. #financing
@rackerHow mining royalty places its bets: “We’re trying to invest counter cyclically… Why are we going to compete with banks doing private placements and bought deals, that’s the cheapest money for the companies, we’re going to look for where our money can get a better return… Where we can do best is where there’s lots of investment opportunities... In my mind you've gotta look at 20 things to find 1 that is investible..." $FNV CEO #financing
@marketwiredComstock Announces Results of Annual General Meeting and Closing of Private Placement Raising Approximately $2.65 Million @marketwired/comstock-announces-results-of-annual-general-meeting$CSL Ken Kuchling and Jefferson Gregory join the board of directors of Comstock. The company has also raised $2.65 million by way of $0.15 Units with a full warrant at $0.20 for 2 years. Also, FT Units at $0.18 with a half warrant at $0.20 for 2 years. #financing
@MiningBookGuy@cjb@freeheel@Blueshare RE: https://ceo.ca/mtr.l?446e76151b60$MTR.L - wow, FANTASTIC news! i'll briefly go through my immediate good/bad impressions:
GOOD - I 100% guarantee that this will get the attention of potential North American investors! Both $MTR.L and $MOD.AX still incredibly overlooked in this part of the world. Not only does T3 #Botswana#copper project get 'instant credibility' with #Sprott name attached, but $MTR.L has an even better reason to 'catch up' with $MOD.AX valuation. This is an amazing deal for people who can participate in the PP
BAD - as retail, I'm never a fan of '5 year, full warrants'. This is very similar to recent deals I've seen from Sprott, like $AAN and $GXU. It's excellent for people who can participate...but it blows out share structure even further. Unfortunately, $MTR.L already has some share structure issues, and this isn't helping. While $MOD.AX has too many shares out, their last 2 financings had no warrants, which I really liked.
Still, it's overall a HUGE positive--pricing was good at 3 pence, with warrants at 6 pence. getting this #financing is much more important to $MTR.L, because it's 'AIM' listed, and I support it with a large stage in $MOD.AX (and currently much smaller stake $MTR.L), because it's a crucial step that could eventually lead to North American 'big money' :)