LKE 7.41% 5.8¢ lake resources n.l.

brunk, that's too simplistic, it's been happening to LKE's SP...

  1. 20,893 Posts.
    lightbulb Created with Sketch. 2009
    brunk, that's too simplistic, it's been happening to LKE's SP for months, especially since June.
    Let me give you a hypothetical relating to the AMVEST Capital deal, just as an example with nothing implied.

    On 28 Feb 2019, their investor lent LKE $1.6 million @ 15%p.a. interest, payable quarterly, with convertible unsecured convertible notes, with the conversion price based on 3 VWAPs over 20 days prior to conversion and selected by the investor.

    Now, the investor has already converted notes and has received 22.48million shares at an average cost of around 4.4 cents , say, that's cost
    $1 million after excluding the quarterly interest payment..
    That leaves $600,000 still owing. Let's say the investor converts all of them at, say, 6.5 cents, that translates into around 9 million shares.
    So, the investor end up with, say, 32 million rounded up and including another quarterly interest payment.

    For this exercise, I have assumed that the 22 million from those 5 conversions since 6 May have been sold and quickly and from the records using the average returns for those 5 periods and the number of shares "sold" at those 5 times, the return would have been $1.75 million.
    And the investor still has a possible 9 million shares, at the current SP, that can be converted from that remaining $600,000 owing!!!!

    Compare that for simply relying on a return of that $1.6 million capital and 12 months interest of $240,000 a total of $1.840,000.

    The investor has just about got all of his money back and still has around $600,000 plus interest to collect, or convert all of that into another 9 million LKE shares at anybody's guess what they will be worth!!!

    I know what I would have been doing in that investor's position and I'm sure you would too. And that does not include anything untoward, just "timely" "very astute" converting and selling!!!!

    The investor may not have sold any and could possibly end up with around 32 million LKE shares.
    Now, I have deliberately NOT referred to the selling prior to those 5 conversion dates, as that would most certainly be implying that there was possible manipulation and I'm not suggesting that in any way and not the purpose of my hypothetical.

    But, it's not just a dog market!!!!

 
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