Ann: Reduction of liabilities and Cleansing Statement, page-5

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s1r1us

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30/09/22

20:25

Post #: 63974398
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Originally posted by AppinTR ↑

Mick I would be very pleased if creditors were taking shares for payment at a 42% premium to current SP, That's some seriously eye raising stuff right there. That's a win in anyone's book!
Seems to be a trend occurring here regarding transparency, By that I mean why would a creditor accept a share issue offer at a 42% premium to the current SP that has questionable trading trends and possible SP manipulation, But I have a theory!

I crunched some numbers to give share holders here some food for thought based on SOI being 267,000,000. (PS it's going to be close to 300,000,000 after this rights placement).
At current SP
10% rights issue @ 3.5c = $935,500 not enough to pay costs!
15% rights issue @ 3.5c = $1,400,000 (15% placement capacity under listing rule 7.1) This covers the creditors by 100k and a bit.
At premium issue price
10% rights issue at premium 5c = $1,335,000 This covers the "reduction" of the current of the liability leaving some room for another possible 5% placement capacity down the track.
Is anyone following me on this?
Based on these figures my guess is NME is offering the rights at a 42% premium of 5c because they could/may have further liabilities and may need the ability under listing rule 7.1 for placement capacity without shareholder approval. Only a guess on my behalf but not as silly as it sounds! We don't know what liabilities the company has at present.
Based on the placement there is no cash in the bank & Ken's credit facility is exhausted it seems. So it begs to question, Where is the rights issue?

The really silly thing is these debts are for "Payment of creditors and accruals including legal fees, corporate advisors."
Now imagine for a second that Nex Metals paid their share of fees for exploration instead of unnecessary legal & corporate advisor fees.
There's obviously more costs to come but doesn't it just make you wonder why?
GLTAH!

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Not sure what figures you're using but rights issue proposed to issue 98,644,748 new shares at 0.031, plus another 28,919,475 for debt consolidation at 0.0444
Total SOI after RI "if" fully subscribed(have to be a supreme optomist) plus debt issue would be 394,587,847

NME Price at posting: 3.5¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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