I don't have any argument with the substance of your comments regarding placement shares.
Yes, I also have the utmost loathing for the Placement flippers and the manipulators, spivs, urgers etc who inhabit the flipping and trading world. Just as I detest some HC dwellers who behave despicably with their sometimes vile, incoherent and/or unhinged posts. I put the whole lot in the same sorry category.
But none of that really deals with the issue raised by fastbuck's post. Which is: whether it is in the coy's best interests for an existing S/H to participate in a SPP or buy - cheaper - on-market instead.
A coy can't explore and develop and acquire cashflow if its shares only churn between sellers/flippers and buyers. That just puts $$ in flippers'/sellers' pockets. My view has always been that, as much as SHs might hate CRs, they are necessary; and unless SHs put their hands in the wallets and get $$ into the coy's treasury (as opposed to the piggy bank of a selling flipper) it might be stymied/hindered in its development.
Whether or not this particular CR is necessary right now is a completely different matter.
You said: "KSN don't need cash for awhile"
The Offer document states the purpose is to pay for Mineral Hills. I understand that there is a binding agreement in place requiring KSN to pay up to A$22.7M in cash, shares and deferred payments plus a 2% NSR royalty on production: Upfront Consideration: • US$1m cash (A$1.3m) • US$8m equity (A$10.7m) Deferred Consideration: • US$1.5m (A$2.0m) cash payment on 15,000oz gold production • US$2.0m (A$2.7m) cash payment on 22,500oz gold production • US$3.5m (A$4.7m) cash payment on 30,000oz gold production • US$1.0m (A$1.3m) cash payment on earlier of 37,500oz gold production or 31 December 2023 • A 2% NSR over future mine production from the project
Given that KSN had $7.5M in cash a couple of months ago, how else can we pay if not through a CR?
We can also look forward to production in the near term.
KSN Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
