Sorry mate.. It just doesn’t make sense and frankly I am calling BS on this.
Market Cap is basically Share Price multiplied by SoI. In this case, CRML has close to 90M shares on issue.. At $15 per share, the market cap is now roughly US$1.35B as valued by some random retail trader with pennies. Neither I nor the ASX will take this valuation seriously.
As for the issuance of $3 shares to Empery Asset Management, well.. my point is absolutely valid. It is an extremely discounted sale of shares proving how desperate we were for funds and how totally disinterested the market is in this project. It is also a “Full Ratchet” issue which protects them from future dilution.. so your point that at 500M, they’d have a lower value is not accurate. They’d actually receive shares proportionate to dilution which even worse… What a crappy deal for CRML and EUR!
So, here’s my verdict: NASDAQ has called Tony’s bluff and investors were simply uninterested in CRML. Empery Asset Management was the only fund interested and they valued CRML at about US$270M. Since we had no other interested party, we agreed to those shit terms and have listed.
EUR with roughly 83% ownership will have shares worth US$225M on its books. Considering EUR also has other assets with some potential, I’d assume EUR fair value to be around US$250M.
That puts EUR at around 18 US cents based on 1.4B outstanding shares. That’s roughly 27 Australia cents, which is still much better than the 8c we are on. So, I’d be happy with a 25c EUR share price
P.S: The 500M shares you keep talking about has nothing to do with “Pro-forma” MC. That clause is simply there for majority votes to approve registration of upto 500M securities with the SEC. Right now, we don’t even have enough investors interested in buying that many shares from us.
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