The 14.9% stake in BOM/WTR is positive in my view. It vindicates the minerals sands project by a major player who has put in $12M as equity.
Pros
- vindication by a cornerstone investor already successfully demonstrated a project in production - potential take-over down the track - help with offtake negotiations - will probably participate in future fundraisings (making easier to raise cash) - has taken care of loose stock from the WTR old shareholders (those that wanted to take a bit off the table probably have done so now) - so no loose stock on listing
Cons
- the 15% stake will make it hard for others to take it over
BOM will relist this Thursday under WTR
WTR Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held