Now that the recent ''over sold looking'' scenario and sentiment has been met with a 3B ANNS ,and the known issue price of 7.1c is a 10% discount to the vwap in a preceding non disclosed draw-down period, the sp imo will move fairly quickly back into the upper 8's without news or low teens WITH good news.
This usually assists in providing an orderly feed in of newly issued shares.
This is not unusual for micro caps. It is a known M.O.
fwiw, I think IK negotiated a very competitive deal for the company as most drawdown facilitators in the heady days were doing deals with companies needing a secure cash facility at a 15% or even 20% discount to the vwap.
If you can forecast a company's cash burn,in mnm's case exploration and running costs etc, you can usually link some of the unexplained share price movements.
I think holders should be pleased with the sp drawdown price as it reflects an indicative sp of 7.8cps with less than 1% dilution. Understanding that drawdown facilitators are fondly referred to as Mr 20%, you have to factor in that their newly issued shares will be sold into a market 'made' in the mid 8's to low 9's at least.
Every micro cap has at least on 'market maker' on the books, whether deemed at arms' length or otherwise. imo
This company runs frugally which may even suggest the draw down was for more than understood cash requirements and may be to help speed up a project ?
ALSO FWIW, I suspected this was the scenario, hence my post one above yours on this thread. I dared not suggest it here as it would have been met with flaming passion ( of the un welcomed type )
Good luck and peace to all holders and fence sitters. it was a very controlled and clinical 3B imo.
MNM Price at posting:
7.4¢ Sentiment: LT Buy Disclosure: Not Held
