Negatives: 1. Takes the steam out of SP appreciation in the run up to SS and MRE 2. Dilutes existing holders 3. Funds not required immediately creating investor anxiety...ie what are they worried about?
Positives 1. During the marketing of the CR to institutions our story is spread much more broadly amongst the mainstream investment community. This is imperative to get maximum traction from larger institutions immediately post these Q3 announcements. 2. Funds now locked in to get us through all studies, exploration and WC to end 2021. 3. Clearly the company is focused on guaranteeing the delivery of the needs of our JV partner Ecopro in the timeframe required ie by 2023. 4. Company is now insulated against short term economic and market dislocations which could have threatened the tight timeline above. 5. With SP stalling at current CR levels there is now less chance of a "buy the rumour sell the fact" event on release of SS and MRE. 6. SH dilution minimal in terms of opportunity to participate in SPP and broad expectations that the upside potential of the MC is not materially affected long term by this CR. 7. The strategic decision to do the raise, was in the opinion of the board, in the interests of all stakeholders.....The board and senior management being large holders of the shares have their interests aligned with the rest of us long term holders.
Bottom line is that although we all would have preferred this CR to occur later rather than sooner, if you put yourself in the position of management you can clearly see why they took this road......
Nothing has really changed IMO, DYOR, GLTAH
BSX Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
