Ann: Trading Halt, page-155

First 155 Last

Share
Profile

Follow
tin_shed_trader

17,443 Posts.

1153

12/07/23

09:05

Post #: 68741275
Share

Originally posted by dynofish ↑

For those unfamiliar with Flow Through Funding, it would be worth going through the ASX releases for Winsome Resources(WR1). They raised twice around the end of last year/start of this year using Quebec jurisdiction rules. Basically, the Canadian Government(or Provincial Government), provides a rebate for new equity raised for the express purpose of exploration for critical minerals to be undertaken within 18months of the new equity issue. That rebate is available only to a particular class of Canadian investors. In Quebec I think the rebate was 38.5%.

So those investors get an immediate reimbursement from Government and the shares are usually on-sold to Australian investors as that is the home of the company. Assumably the Canadian investor benefits and the company issues significantly less new shares to raise the same amount of capital due to the rebate premium. Less dilution...better for all.

The experience with WR1 was that the share price tended to escalate to a level closer to the Flow Through Price rather than the pre-rebate price. Even if the price does not immediately go up, we still benefit from the company having more cash for less shares issued thanks to the Canadian Governments.

regards
DF

Expand

I am trying to understand the flow though process.

CAD19c is AUD21c

So Canadians are paying AUD21 but ar getting a rebate somewhere of about 8c ?

So is it correct to say that in effect Canadians are paying AUD14c so could sell on market to Aussies at say......current price of 16c. Not much of a jag but....a small profit nonetheless should they decide to sell.

Or did i get all that wrong ?

AW1 Price at posting: 16.0¢ Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

NVU

Nanoveu surges 10% after benchmark testing for new AI chip begins

MTH

Mithril's drilling in Mexico picks up silver at 997g/t, gold at 28g/t

M4M

Macro, Norden set up transport solutions initiative for West Pilbara

TLG

Talga Group wins key permit for flagship graphite mine in Sweden

SNX

Sierra Nevada raises $2M for silver exploration at Blackhawk

IRX

InhaleRX snags $38.5M in funding from VC biotech funder Clendon

Week 42 Wrap: HotCopper's top picks; new ASX 200 record; world yawns at war

SWP

Swoop lobs $18M offer at microcap telecom Vonex – in which it holds 19.9%

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

What's causing the cost-of-living crisis, and how to navigate it