EM2

1.96%

5.2¢ eagle mountain mining limited

Ann: Positive Assays Provide Development Options at Oracle Ridge, page-22

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ggwill

2,786 Posts.

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24/05/23

17:50

Post #: 67944207
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Originally posted by mjshackl: ↑

This is my concern.

Current MC of 30 million - CB has issued the company a loan for 3 mil. That's 10% of the current MC.

If you take into account the shares CB owns (approx 30%), he's getting up to the point where he technically owns more than 40% of the company.

If the SP drops further he'll get to the point where he's owning + owed >50% of the company - if the loan matures and EM2 have no way to pay it back (say, they can't raise the capital) he could force the company to receivership and he'd be first in line to be paid back as a creditor. He could just say, sell me the business for what you owe me. The company gets delisted, CB owns 100% of it again and he can continue to fund it himself, with maybe some private equity until the market improves.

And if you scoff at this, it wouldn't be the first mining project in the world where impatient creditors get the asset for cents on the dollar.

Expand

According to the agreement, the company doesn't have to pay the loan back. Either side can convert the loan into equity. If CB wants to convert the loan into equity, the price is minimum 14c per share. If the company decides to convert the loan into equity, the price is discounted. So, the company can't be forced to sell anything.

Also, I am hoping that after all the money spent, the value of the asset is much more than the current market value.

EM2 Price at posting: 10.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 5.2¢		Change 0.001(1.96%)		Mkt cap ! $20.42M

Open	High	Low	Value	Volume
5.1¢	5.3¢	5.0¢	$57.06K	1.115M

Buyers (Bids)

No.	Vol.	Price($)
1	200000	5.1¢

Sellers (Offers)

Price($)	Vol.	No.
5.2¢	31999	1

View Market Depth

No.	Vol.	Price($)
1	200000	0.051
9	311852	0.050
1	300000	0.049
4	165522	0.048
2	320000	0.047

Price($)	Vol.	No.
0.052	31999	1
0.054	20000	1
0.059	14000	1
0.060	261365	4
0.062	2487	1

Last trade - 16.10pm 28/06/2024 (20 minute delay)

EM2 (ASX) Chart

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