Share issue

Hi toil and everyone

OK I have had another look into the share placements based on toil’s last post and this is what I have found.

15/3 – announcement of US$150k funding
15/3 – 6.6m shares to secure the US$150k funding
13/4 – 9.59m shares issued for $201k (US$150k)

OK so what we can do is add the two share issues together and we get 16,195,456 shares.
That is the total amount of shares KFE issued to get the $201504 back in March. This equates to .0124c per share

Now having a look at the history of the share price you can see that all throughout Feb and even in early March the share price traded around 1.4c and it even got to 1.2c.
So what it appears to me that occurred back then is Bergen and the company agreed for an additional US$150k and the price was worked out at the time – ie a 10% discount to a 5 day VWAP.
Bergen received some of the shares then (6.6m) and then the balance a month later (9.59m).
Whether you classify it a fee as per Toil’s post or part issue of the shares with the balance a month later it doesn’t really matter.. you need to add the two share issues together to get the total amount issued to Bergen.

Now if we fast forward to today (well last night), then I think the same thing is happening again.
If we say that that the VWAP for this share issue is 2c so a 10% discount is 1.8c and the company is raising $100k then the total number of shares issued to Bergen will be 5.55m. 4.8m was issued last night and that means another 750k in a months time. That is comforting as it means the balance of the share issue is a much smaller component than what happened in March/April, and really very little in the whole scheme of things.


3 other important points:

Firstly, the amount requested by the company (US$75k) is half the amount of last time. Less shares issued, and less money needed by the company.
Secondly, the share price has traded much higher in the preceding period this time around compared to last time
Finally, we are very close to the release of much awaited ore testing and/or DFS news that will have a significant impact on the valuation of this company.

It will be fascinating to see what Bergen do. Do they elect to sell straight away and at what price. And will people step up and take the stock like I suspect they will?

I suspect people will step up and clear the Bergen holding in the coming days (assuming Bergen off them all) given there is no other way to build a meaningful position in the company without significantly pushing the price up – the recent price action and current market depth is testament to that.

Good luck all. Exciting times!