GNM

0.00%

1.2¢ great northern minerals limited

Totally disgraceful. The options plus the cash fee is almost...

First 11 Last

Share
Profile

Follow
fox

137 Posts.

32

31/08/20

15:38

Post #: 46957545
Share

Originally posted by SuperWealthy: ↑

If cash is needed, the CR is a way of life so I'm not going to sling mud about the CR.

But we need to be careful not to apply the blinkers when assessing capital raisings, how they are managed and objectively assessing the cost - every CR is very expensive, ballpark minimum $400K-$500K (whether it's cash or shares to the broker) so there are a few things to acknowledge here:

1. The sell-down prior to the CR was *somewhat* coincidental - let's assume there was nothing untoward there.

2. Having multiple raises in a 12 month period is extremely costly. Of course it's not a great idea to raise too much at a lower share price but once you factor in 3 x CR costs at $400K-$500K each it's up to $1.5 mill into the pocket of the broker and that's cash GNM have paid in fees rather than directing it to operations.

3. Don't ignore the 67 million options that have been allocated to the lead broker as payment - I'm unsure if there is also a cash fee for this CR. All have 3 yr expiry and 22 million are at an exercise price of 2.4c so those options alone will reap $440K for the broker if the GNM share price hits just 2.6c (which it did just a week or so back). Plus there are another 44+ million at higher exercise prices.

The financial benefit of the CR to the lead broker is potentially substantial - again I get that & it's part of doing business, but also factor in the dilution effect of those options on ballpark 900 million shares - a dilution of 7% and that's a cost to you, me and every other shareholder so once we factor in all of those nasty details it's difficult to see how GNM wouldn't have been far better off just raising more capital at a lower price especially as it was only a few months ago and the forward planning must have been on the table at that time.

Expand

Totally disgraceful. The options plus the cash fee is almost equivalent to 100% of the cash raised. Looks like a free gift to some mates to me. How can you give away options of 7% of the company for the promise of bringing Canadian institutions.

GNM Price at posting: 2.3¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

FHE

Frontier Energy achieves key milestone for Waroona energy project

SBW

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

STX

Strike Energy secures $153 million for Perth Basin gas projects

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

AML

Cultural heritage agreement puts Walford Creek exploration back on the map

BRX

Belararox delineates another porphyry in Argentina at Tambo South

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

RDN

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

EMD

Emyria's Empax Centre chosen for mental health clinical trial

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

There are more pages in this discussion • 3 more messages in this thread...

First 11 Last

Add GNM (ASX) to my watchlist

(20min delay)
Last 1.2¢		Change 0.000(0.00%)		Mkt cap ! $1.856M

Open	High	Low	Value	Volume
1.2¢	1.2¢	1.2¢	$8.173K	681.1K

Buyers (Bids)

No.	Vol.	Price($)
1	600195	1.2¢

Sellers (Offers)

Price($)	Vol.	No.
1.3¢	200000	1

View Market Depth

No.	Vol.	Price($)
1	600195	0.012
2	473385	0.011
6	1679995	0.010
3	933330	0.009
7	2089995	0.008

Price($)	Vol.	No.
0.013	200000	1
0.014	200500	2
0.015	121000	2
0.016	166000	1
0.017	210000	1

Last trade - 10.30am 21/06/2024 (20 minute delay)

GNM (ASX) Chart

Totally disgraceful. The options plus the cash fee is almost...

Frontier Energy achieves key milestone for Waroona energy project

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

Strike Energy secures $153 million for Perth Basin gas projects

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

Cultural heritage agreement puts Walford Creek exploration back on the map

Belararox delineates another porphyry in Argentina at Tambo South

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

Emyria's Empax Centre chosen for mental health clinical trial

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Totally disgraceful. The options plus the cash fee is almost...

Top Stories

Frontier Energy achieves key milestone for Waroona energy project

Shekel Brainweigh CEO Nir Leshem weighs in on AI adoption ahead of FY25

Strike Energy secures $153 million for Perth Basin gas projects

ASX Market Update: Shares fall flat as GYG soars on debut | 20 June, 2024

Cultural heritage agreement puts Walford Creek exploration back on the map

Belararox delineates another porphyry in Argentina at Tambo South

With financials holding the fort, materials must step up with some heavy lifting to stimulate stocks

If you thought lithium was dead, think again. The Pilbara will be central to the next upswing

Emyria's Empax Centre chosen for mental health clinical trial

Plagues precede widespread power shifts. We’re living in one – and minerals are at the fore

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News