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Am I the only one who is baulking at 3B shares on issue?

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rmdltd

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122

04/04/23

16:13

Post #: 67131154
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Originally posted by Hotfire: ↑

Based on rough calcs, using $25mil CR at 0.04 (dilution factor) and $200mil for 60% of phase 1 and using a market cap of $225mil post this deal, which in essence is cash and 2.917bil shares on issue, I come up with base SP case of 8.5 cents.

Everything else such as partner quality, no funding required for phase 1, de-risking HHR, attracting Institutional support, news worthiness, etc, etc is all cream on top, so maybe 12 to 14 cents in the stampede to get on board.

At 8.5 cents = $248mil MC
At 12 cents = $350mil MC
At 14 cents = $408mil MC

However if $25mil is the CR, the market will need to digest up to 600mil in new shares, depending how many hold and how many flip, then add current holders that might cash in.

Will be interesting to see this play out, as we do not know the quality of the CR participants.

I do recall a research paper Aug/Sep last year that had, in their opinion, a phase 1 development valuation of 14 to 16 cents.

I would be tempted to offload 70% if those upper prices come into play.

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Am I the only one who is baulking at 3B shares on issue?

HHR Price at posting: 5.0¢ Sentiment: Buy Disclosure: Held
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Last 0.6¢		Change 0.000(0.00%)		Mkt cap ! $16.85M

Open	High	Low	Value	Volume
0.6¢	0.6¢	0.6¢	$15.92K	2.654M

Buyers (Bids)

No.	Vol.	Price($)
12	14525363	0.6¢

Sellers (Offers)

Price($)	Vol.	No.
0.7¢	34495507	33

View Market Depth

No.	Vol.	Price($)
11	14426910	0.006
24	9749943	0.005
8	5025000	0.004
3	3816666	0.003
3	4700000	0.002

Price($)	Vol.	No.
0.007	15563579	28
0.008	1732796	6
0.009	1755857	4
0.010	792857	4
0.011	743000	1

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HHR (ASX) Chart