They probably need to do a consolidation as part of the CR (not that it helps existing holders in regards to dilution), otherwise the SOI will be so large that the SP will be chained to the basement. In existing terms, the company was capped around 30mio (give or take) when it went into VA with a SP of 3 cents. A CR looking for 2x market cap would require a hefty discount to say the least, only more so in light of VA and now C&M. Whilst it has been flagged that Regal/Tembo are stepping up to the plate they will squeeze blood from the stone on this as they hold all the cards.
Even if it were priced at 2 cents (and I think that's overly optimistic) the quantity of new shares issued in 'old terms' would be 3 billion. 10:1 consolidation would be sensible.
FWIW I like the exploration strategy and will look at the terms of the placement carefully with a view to participating - pending of course, who they get to run the show.
TNC Price at posting:
3.0¢ Sentiment: None Disclosure: Not Held
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