the capital raising was obviously necessary since at least $15M...

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ddzx

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27/10/15

16:58

Post #: 16265017
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Originally posted by PabloP ↑

DDZX- share price has been wallowing around this price for quite some time....... no cap raising at a big discount to market - this scenario is rife in the mining sector at the moment.

So in summary, compared to others, minimal dilution and not a massive discount to market price. Probably closest to the best outcome of the possible scenarios. Especially if they are then fully funded through the BFS, PFS etc.

In relation to the takeover - you now have two companies with interesting stakes in the company. Hard to see one dropping off if the other makes a play.

In the end - no funding issues to contend with (assuming it becomes binding and executed), relative minimal dilution (compared to other potential options), an extra player at the table to prevent opportunistic takeovers (IMHO), small discount to market for shares.

IMHO best outcome for existing shareholders.

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the capital raising was obviously necessary since at least $15M was required to finish the feasibility studies

however, your idea that this protects ELM from a cheap takeover appears non-sensical

Dingyi were no longer a threatening shareholder since Harlequin & EMC diluted the Dingyi shareholding (down to 17%) with the previous capital raising

this current capital raising reduces your shareholding by 20% and any takeover price by 20%

further, if this new shareholder takes over the company, they have already bought 20% if it for 19 cents a share

Last edited by ddzx: 27/10/15

K2P Price at posting: 18.5¢ Sentiment: None Disclosure: Not Held
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the capital raising was obviously necessary since at least $15M...

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