In making any decision , Investors should at least consider by remembering back to the Oct / Nov 2017 Renounceable rights issue which was a 1 for 2 entitlement at 1.0 cents and which traded for a whole 3 weeks PLUS 1 day from Thursday 5th and Friday 6th October until Friday 27th October 2017 before moving up exponentially.
Those who remember will recount that there was a total of 487,409,777 new shares issued by comparison totaling $4,874,097 in funds raised ..... and which was ONLY partially underwritten to $2.5 million by Patterson's .
Now you can say what you want about Paterson's , but it was an extremely successful raising which ultimately saw the run up in the SP reach the lofty heights of over 10 cents.
Import though in remembering this raise , is that at the time , the SP was trading at 2.1 cents or over 110% above the issue price on Monday 20th October or exactly 1 week from the last day of trading where it was well on its way to 3.1 cents.
So by the time it had traded a full week to 3rd November you would have netted yourself 210% gain on your original 1.0 cent outlay. And by the time it hit Friday 24th November ( or only 5 weeks later ) , the SP was trading at 5.1 cents or 510% from the 1.0 cent entry price if you had of taken up your rights ....or even bought on Market during the rights trading window.
So there are a lot of similarities about this raise . Like the linear expression of where the SP has come from and where it is likely to go. So as was then and has been now ever since end of December or only 3 months , the SP has come from 1.0 and gone through the 3.1 Acuity Capital pricing as well as the 3.0 cent unlisted options and right on through the previous April / May 2018 larger capital SPP raising of 5.1 cents to be currently reflected around the 3.6 - 3.9 cent level.
So they are very similar indeed. The 5 major issues which aren't as similar are ONE:The raise while only being 31% larger with it's 151,034,099 more shares - it isSECONDLY raising a sizeable amount more or $15,525,903 more to be exact or 419% as well as having a ' Cornerstone ' key stakeholder taking 9.9% of the total offer with its confirmed 63,205,944 new shares.
The THIRD difference would be that the Company is coming from a starting COH position of $9,109,912 whereas back then , the COH was virtually non-existent.
The FOURTH major difference is that the current rights issue if 100% FULLY underwritten whereas the 2017 lesser amount raising was only underwritten to just over HALF at $2.5 million dollars only
And the
FIFTH and final very key difference with regards to the differences in the raises it that of it's declared Purposes here are for 24.5% allocated to the NAL Bid acquisition and assessment , 27.5% to the Authier Project mine approval , exploration and continued assessment , 16% to the Tansim Exploration and Assessment , Another 16% on general working capital , and 9.8 % on it's Australian Projects expenditure....with the remaining $1.265 million or 6.2% being spent of rights issue costs. Of course the beauty of all these allocations , is that it still leaves Sayona with approximately $9.1 million of the ' starting ' cash balance. So where is that going to be deployed ?.........
All of this then compares to the 2017 raise where it was stated that was ONLY to accelerate the Authier Project , complete the Preliminary Feasibility Study , and for General Working Capital purposes and rights issue corporate costs.
So some of these differences could be considered HUGE in my opinion , and so one would have to agree that given the similarities in the overall Lithium market rise and rise as compared to back in 2017 , that this rights issue has all the hallmarks of actually being better the last one , and one which could easily see us back over the 5.1 cents 2018 SPP raise , and well and truly on the way to revisiting the 8 - 10.0 cent trading range .......in my opinion.
So suit yourself whatever which way you want to compare , but in the end , Investors will make up their own mind up about this one and how they feel about it's ultimate success or not. Just pointing out some of the historical facts of interest that tend to get overlooked in the process.
And believe me , on top of ALL that there is a lot to like about their Quebec Lithium expansion and aspirations......
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