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heavenlyhaloes

1,175 Posts.

35

25/07/16

11:33

Post #: 18357406
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Originally posted by Lazarus65 ↑

And the math doesn't appear to stack up. If I understand correctly, the agreement is for $333,333.00 per month for 18 months with the monthly payment to vary up or down in pro-rata to the SP and the BMP ($0.0067). This equates to the $6m figure and 1.2 billion shares mean an acquisition price of $0.005. But only if the SP averages at $0.0067, which represents an acquisition at a 25% discount.

But if the SP remains at $0.005, then the monthly payment reduces by 25% to $250,000 per month or $4.5m dollars over 18 months (if fixed at that rate). Which means an effective buy-in price of $0.00375 per share.

So we have progressive 20% dilution of shareholders (over 18 months) for a trailing 25% discount to prevailing market price, to raise cash that is not needed for proppants (as they were already funded for 4 years); not needed for Graphene JV (as that was funded by a recent separate placement); and not needed for working capital (as directors and staff have decided to work for scrip rather than cash).

It beggars belief that this management team keep doing things that raise more questions than it answers.

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Except with likely positive news about proppants and/or the graphene tech, the share price is going to be well north of 0.5c.

LWP Price at posting: 0.5¢ Sentiment: Buy Disclosure: Held
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