I think some people need to put the MNM SP and SPP in perspective and consider the macro environment for a minute...
GXY is in the process of raising money through a SPP and the offer is more than 60% less than SP when it was last traded..(last traded at 23 cents and SPP at 8 cents not underwritten)
One of the frustrated GXY shareholders sent an email to management to ask why the discount was so unbelievably big and why the SPP was not even underwritten?
see below for response according to HC poster
"Dear Luckydog,
Here are your answers below.
Why is the c/r priced at 8c? We needed a deep discount to attract participation. The Small Resource Index is now at the same point as during the Global Financial Crisis. In this market where capital raising is very poor, we cannot afford to not raise our minimum. Also, since we have been suspended the resource market has further declined and we would probably close to 15c trading today
What is the position major share holders in relation to participating in this raising? Most of the major funds have suffered in eth last two months – Blackrock had $4b in redemptions In this light major shareholders have not yet committed
Why is the offer not underwritten? Same reason, very poor capital markets – no one is prepared to underwrite"
This should help MNM holders to understand how tough the funding/capital markets are for small caps.
IMO, IK got a very good deal and we were very fortune to have Cygnet underwrite the offer. It is a big vote of confidence in MNM. The underwriters have the small caps bent over a barrel and only the most promising stocks will be underwritten IMO...
This is just some food for thought...
Some will wonder why the other Tech stock has been waiting on the CSI funding for months and months and they get delay after delay.....this could also help to explain their dilemma. Funders/CSI's/large investors are being very careful where they invest their cash and they are in the drivers seat...
The market is not jumping at anything risky and raising any cash is very tough at the moment.
MNM Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
