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It's your last sentence that has the most relevance to the...

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    It's your last sentence that has the most relevance to the companies prospects of success though.
    If a company has lots of SOI, but the business model is working and management achieve targets then they will have no issue raising capital.
    If a company has very few SOI and the management team aren't achieving their goals and can't demonstrate the business model works then they will have trouble raising capital.

    A great example of low SOI and poor management driving the company further into the toilet is CLZ:
    • July 2022 they had 260m SOI and the SP was at $0.15.
    • In just 12 months the SP is back down to $0.001 with a MC of $9.6m, meaning they've got 9.6Bn SOI.
    • In the background to that their management trumpeted that they would have their gold project into production with the $10m funding package they secured in July 2022, yet the project isn't in production and all that has happened is they've spent that $10m of funding plus another $9.4m from CR.
    • Now when they issue new shares to pay 'contractors' at an issue price of between $0.0005 - $0.00085, those shares just go straight into the sell queue that has a 2Bn wall at $0.001.
 
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