Ann: Pause in Trading, page-209

You are missing the point. Its not about convertible notes vs cap raise. A company doesnt commit to raise over 100% of their market cap via conventional cap raise. Its about how the market can now 'do the math' on how much dilution there could be by the time this project gets going. Baillieu Holst calculate AK project NPV on their best scenario at $232m (About $300m AUD) on their assumed 0.75 conversion once you include 6% royalties between DRC Gov/Fimosa and additional $20m debt etc.

You are ignoring 3 years of interest payments the lender can choose to take in shares at the VWAP at the time of payment due. Its also the overhang of further dilution based on ongoing VWAP that the market will never like about convertible notes, the lower the SP, the more shares they get (for the interest, please correct me if I am wrong).

If VEC is pushing 3b+ SOI by the time the project is going assuming they can fund capex, the 10c+ share price many see as a formality is hard to see happening, especially with all the water to go under the bridge in the meantime and the sovereign risk the DRC brings factoring into valuations (I am personally fine with DRC but many others aren't).

Thats why I think the market isn't thrilled.