timjames109
I don't have any argument with the substance of your comments regarding placement shares.
Yes, I also have the utmost loathing for the Placement flippers and the manipulators, spivs, urgers etc who inhabit the flipping and trading world. Just as I detest some HC dwellers who behave despicably with their sometimes vile, incoherent and/or unhinged posts. I put the whole lot in the same sorry category.
But none of that really deals with the issue raised by fastbuck's post. Which is: whether it is in the coy's best interests for an existing S/H to participate in a SPP or buy - cheaper - on-market instead.
A coy can't explore and develop and acquire cashflow if its shares only churn between sellers/flippers and buyers. That just puts $$ in flippers'/sellers' pockets. My view has always been that, as much as SHs might hate CRs, they are necessary; and unless SHs put their hands in the wallets and get $$ into the coy's treasury (as opposed to the piggy bank of a selling flipper) it might be stymied/hindered in its development.
Whether or not this particular CR is necessary right now is a completely different matter.
You said: "KSN don't need cash for awhile"
The Offer document states the purpose is to pay for Mineral Hills. I understand that there is a binding agreement in place requiring KSN to pay up to A$22.7M in cash, shares and deferred payments plus a 2% NSR royalty on production:
Upfront Consideration:
• US$1m cash (A$1.3m)
• US$8m equity (A$10.7m)
Deferred Consideration:
• US$1.5m (A$2.0m) cash payment on 15,000oz gold production
• US$2.0m (A$2.7m) cash payment on 22,500oz gold production
• US$3.5m (A$4.7m) cash payment on 30,000oz gold production
• US$1.0m (A$1.3m) cash payment on earlier of 37,500oz gold
production or 31 December 2023
• A 2% NSR over future mine production from the project
Given that KSN had $7.5M in cash a couple of months ago, how else can we pay if not through a CR?
We can also look forward to production in the near term.
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Last
7.5¢ |
Change
0.001(1.35%) |
Mkt cap ! $53.02M |
Open | High | Low | Value | Volume |
7.5¢ | 7.6¢ | 7.5¢ | $33.85K | 451.0K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 75333 | 7.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
7.8¢ | 339367 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 75333 | 0.075 |
3 | 63582 | 0.074 |
3 | 518955 | 0.073 |
2 | 20167 | 0.072 |
4 | 172000 | 0.071 |
Price($) | Vol. | No. |
---|---|---|
0.078 | 339367 | 2 |
0.079 | 126388 | 3 |
0.080 | 359662 | 8 |
0.082 | 167427 | 2 |
0.084 | 19190 | 2 |
Last trade - 14.15pm 29/07/2024 (20 minute delay) ? |
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