Close, essentially the AGM resolutions were in place loooong before the latest funding agreement with FT, so I doubt it would have even been a consideration back then. So the $5m USD to MGI/sophs, in my personal opinion, will never be exercised - why? Because the $5m is coming from FT already, and I don't think the company can still issue shares to MGI noting the approved purpose of the resolution (my assumption only, I will try clarify this with vector next week if I can). Essentially i'm saying I don't think they can double dip on a 'CR' (nor would they need/want to). They will have AK fully funded through to DFS and decision to mine.
To confirm, the funding agreement with LT is signed, so when we sign AK we have no choice but to draw down from the date of signing, or shortly thereafter, but the effective date for tranche 1 is date of signing not date of draw down - a minor point but that's my interpretation - and yes if 10 day VWAP is 4.4c then it would be $5m USD raised at 5.5c (25% premium to VWAP) so roughly 125-150m dilution only, give or take my back of the envelope conversions.
If you look at absolute worst case, if the deal is signed and VWAP is 0.001, I think we would have to raise at .00125 lol. But I mean.... I won't go as far as to say it's an 'impossible outcome', but I think it has roughly the same probability as it does dollar value (0.00125% chance) Hope that helps
VEC Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
Hope that helps
