Hey, everyone. IMO this is an excellent announcement. Am very happy with the plumped up disclosures in points 2-5 on page 4, and also with the 3rd paragraph following the points:
"Based on the Company’s current cashflow forecasts, it is able to fund itself into 2025 on the basis that only Minimum Subscription (which is the Underwritten Amount) is achieved, which reflects the time expected for the Company to complete the funding for its Phase 1 Project."
Funding as we head into 2025 is not ideal, but our viability until then (no matter the outcome of the Entitlement Offer) is excellent news. We’re not about to go under, we’re carrying on. Share price boosting announcements will drop between now and then on our “possible collaborations using the Company’s technology on third party deposit samples,” amongst others. The lithium sector will also most likely lift, as we progress through the year.
I believe the EO will be fully subscribed, but this was also good to see:
"If only the Minimum Subscription is achieved, there will be no outstanding Salary and Wages owed to Directors and employees."
Hopefully this will not be the case though, so we're able to retain our outstanding employees in Namibia and globally.
Possibly the best new information, however, is in the modified “Directors’ Interests” table on page 2. It includes the additional column "Percentage (%) Maximum Subscription, Fully Diluted" and a new paragraph preceding the table, which states "assuming Maximum Subscription."
There is also an additional footnote 7. which also specifies, "Assumes Maximum Subscription, those Directors who currently hold Shares taken up their full Entitlement and Directors’ interests on a fully diluted basis."
The announcement on 8 April did confirm management's intention to participate “in full in their personal capacity and through their respective superannuation funds and trusts.” This will stand as such a vote of confidence, if it turns out to be the case, especially if Gary Johnson / Strategic Metallurgy take up their full allocation to the tune of $255,517.
As eligible Directors and Key Management also confirmed they’re all applying for shortfall allocation in the 8 April announcement, if GJ/SM fully subscribe, there mightn’t be much shortfall left over. If the Offer is over-subscribed, and requests are accepted, as they have been in the past, this would provide a welcome additional buffer pre-FID.
Good luck to everyone in deciding whether to participate. Sorry I've not been around lately. Will catch up on the threads tomorrow and add a few more thoughts. Cheers, all.
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