Green Critical Minerals – Strategic Thoughts on Capital Structure and OutlookGreen Critical Minerals appears to be a highly promising company, with its graphite blocks exhibiting superior thermal properties that could potentially revolutionize cooling in the server industry. This technology represents a significant innovation with real commercial potential.
However, with only AUD 1.32 million in cash, the company faces a pivotal moment as it will begin to scale soon. The primary concern lies in how it will fund this rollout—particularly whether it can do so without resorting to a capital raise, and if not, at what valuation any raise would occur, like other members have stated on this thread.
Ideally, if the company can bootstrap operations to the point of unlocking its outstanding listed options, it would present a much more attractive proposition to retail investors. There are currently 251,672,933 options on issue with an exercise price of 2.2 cents, expiring in 158 days. If all options were exercised, this would generate approximately AUD 5.54 million in capital.
This would increase the shares on issue (SOI) to approximately 2.21 billion and bring the cash balance to around AUD 6 million. At a share price of 2.5 cents, this would equate to a market capitalisation of about AUD 55.3 million, which I believe is a reasonable valuation at this stage.
Should the company secure a few strategic partnerships—particularly with industry leaders such as NVIDIA—this could support a valuation closer to AUD 100 million, or around 4.5 cents per share.
The risk, for me from a retail investor’s perspective, is that a capital raise could lead to dilution. Often in these scenarios, brokers receive discounted placements and exit quickly, leaving retail investors holding the bag.
So my question to fellow HotCopper members is this:What level of trust do you have in the current management team when it comes to protecting and prioritizing the interests of retail investors?
GCM Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
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