Hi Stirer,I don't think any company should be issuing $1-1.2mil...

Hi Stirer,

I don't think any company should be issuing $1-1.2mil worth of free shares to any investor to try to secure alternative funding. With the conditional nature of the agreement, it was highly likely BMCG could have refused to issue funds to WKT, due to poor liquidity.

In a roundabout way, you have advised the funds WKT raised last year have been mismanaged where they didn't have enough funds to be available to negotiate a better deal with these investors. I agree with you, it appears they needed the marketing of the Bridging loan, TNR, JInpeng's and the BMCG funding to get any deal across the line. I did mention the other week, TNR and Jinpeng, the Bridging loan shareholders didn't want their debt converted into WKT shares they would want cash payments. These investors would be well aware of the risks associated with commissioning a new graphite mine.

Did you end up finding out if the Bridging loan investors are the same shareholders who didn't take part in last year's CR?
And if they are, do you think they were fully aware of how dire the results were from Canaccord and the retail capital raising?

Anyway, It will be interesting to read the details when they are announced, hopefully the agreement doesn't disclose a credit card interest rate and doesn't have conditions that are too onerous on WKT to secure a binding agreement.