Potash paydirt, page-50

What evidence bro ?! you are banging on about a CR which is a very specific form of acquiring money. Obtaining a loan is a different beast.

But to take you back to money 101.

*Takes deep breath and rubs temples in frustration of morons*.

When a company is not generating an income they issue shares as a form of equity in the entity so the fund provider has the capacity to extract a return on investment by selling the shares at a future date. This comes with risk so it is often done at a discount to the current market value of the company, thus ensuring their investment is somewhat insulated.

When a company is generating cash flows they are able to borrow money against the forward projected revenues from the business. This is called a loan. the fund provider provides cash and charges an interest (a % of the money outstanding added to the original sum called the principal). In this way they receive their money back over time + a profit. No new shares are generated in this transaction.

A third method is through their offtake partner they agree to basically under pay on delivered consignments and the delta (the difference between the notional price and the paid price) is kept as debt repayment for a defined period of time or production output. Again, no new shares are issued.

Now, while some companies will selecting option 1 when they are generating cash flows it is often to bring particular people/organisations onboard or they are unable to find a lender with appropriate terms because of the size of the loan or the risks involved. KLL is unlikely imo to be issuing new shares any time soon for a number of reason:
1- the terrible raise last time.
2 - they don't need to as they'll have cash flow
3 - further dilution will likely upset the insiders that are loaded to the gills with shares.
4 - none of this will be relevant for atleast another 6 months because the study isn't even finished, let alone costed.

now that we've done our learning for today, tune in next week where i will teach you about market manipulation and what is happening in our depth.