Shareholders would be diluted into oblivion if they need to raise any meaningful cash to help with a purchase. For every $1m they raised if the issue price was at 5s that’s $200m shares. And if they’re just looking to CR an “small” amount like a couple of mil, why wouldn’t they just get a larger debt facility, assuming that the debt facility in itself would already have to be a few mil at least? Obviously depends on what kind of asset they’re hypothetically looking at.
based on the income from Inna alone, borrowing shouldn’t be an issue when you also factor in the income that would come from a producing asset (and Killa is the permits ever come through!).
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