IMO, a potential capital raise during November pales into insignificance relative to the news we are expecting at any moment between now and the next couple of weeks (during October). In the Half Yearly Financial Report just published, KP2 have clearly stated that:
"The negotiations with PowerChina are advancedand based on the status of the negotiations and the planned activity to finalise the contract, it is the Directorsexpectation thatthe Group will sign the EPC contract not later than by the end of October 2024."and
"the Directors believe that the proposed contract with Powerchina will be signed"
and
"The agreements are now, as at signing date of this half-year report, with therespective legal counsels of both parties for finalisation."
and
"When in final agreed form, Kore Potash andPowerChina will determine a date for a signing ceremony with the Minister of Mines and his colleagues of theRoC in Brazzaville. Relevant details of the agreement will be made public."
IMO, these statements are pretty conclusive and strongly indicate that a successful EPC contract signing is imminent. As soon as the expected EPC signing announcement arrives, IMO, KP2 should re-rate to multiples of its current share price. If the successful EPC signing announcement includes positive details about the funding agreement, or even confirmation that funding has already been secured, then the re-rate of KP2 share price could become many multiples of its current share price.
Within that context, a potential capital raise in November will be insignificant if the raise price is MUCH MUCH higher than the current KP2 share price.
Furthermore, the details of any potential capital raise have not been released. KP2 has some significantly wealthy and influential backers, and often, KP2 raises funds from its top shareholders and does not raise from the public (that has clearly been the case in recent times - the Chairman of KP2 himself put forward the required funds in recent times). If i remember correctly, the whole DFS, about $20 million worth, was funded by the Oman Govt Sovereign wealth fund and SQM. In recent times, KP2 share price only increased on the back of securing new capital from the KP2 Chairman and other wealthy KP2 backers.
GLTAH.
