The issue price for LDA shares is on page 9 of the announcement. It's at 90% of the 30 day VWAP, which laughably the company has included a table in the announcement suggesting an issue price of between 0.0034-0.0036. However, I make the 30 day VWAP to be about 0.0021 and so 90% of that would be about .0019.
Now they say these shares will be issued in the next 3 months, so on my reckoning, if they issue the shares after 24 July 2024 then the 30 day VWAP will change dramatically as all of the volume at .003-.004 will be gone from the equation and it will be much closer to .001.
Also noteworthy is that under the LDA agreement they say that they can't issue shares to LDA if it would cause them to exceed 19.99% of total SOI. So LDA currently have 9.26% of CLZ shares and if the 30 day VWAP comes down to circa 0.001, then CLZ can only raise a max of $100k from LDA before they go over the 19.99% mark.
We all know that if LDA get close to holding 19.99% of the shares and CLZ still need money then LDA will be constantly dumping volume into 0.001 to cash out and making an easy 10% because the peasants (sorry retail holders) can only buy at 0.001 and not for the 0.0009 that LDA buy at.
One thing sis for sure, the SP will not be going anywhere by the basement as LDA will be unloading high volumes into the market for the foreseeable future.
CLZ Price at posting:
0.1¢ Sentiment: None Disclosure: Not Held
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