Ann: US$23 Million Capital Raising, page-43

First 43 Last

Share
Profile

Follow
loki01

11,112 Posts.

619

07/05/18

13:26

Post #: 32929483
Share

Originally posted by JID ↑

Hi Loki and all,

I think I'll stand by my 47% dilution.

Denominator stays the same ... i.e. 1.233 B shares on issue now, prior to raising.

A potential total number of new shares to be issued as part of this process is 578.8m including all later conversions.

Conversions are all at a relatively low 30% above trading halt SP ... thus, you can assume that they will all get converted if BDR survives its current state.

If the conversions do not occur ... well, I think it's safe to assume (former) shareholders will have already lost everything.

Above is immaterial, IMO ... BDR is simply a 'do not touch' unless people are looking for a lottery ticket, but even then, the payout if the lottery ticket 'wins' has just been materially reduced and, IMO, it looks like the probability of a 'win' has lowered (due to Sprott financing not proceeding and conditional nature of T2).

Cheers
John

Expand

JID

Thanks for the response.

Investopedia seems to agree with me otherwise using your approach in their example the dilution would be 100% (obviously wrong) rather than 50%. Anyway that is the way we did this sort of analysis when I took the Gard Dip. of Applied Finance and Investment at the Securities Institute of Australia about 20 years ago.

loki (my grey cells are vanishing at a rapid rate, but despite approaching my 70s there are still a few left.)

BDR Price at posting: 7.1¢ Sentiment: None Disclosure: Held
5 Upvote

0 Great analysis

Reply