CR are 9/10 done prior to major news. it's a common...

CR are 9/10 done prior to major news.

it's a common misconception to many investors who often ask. Why didn't they wait for the major news and then raise money at a higher price.

The answer is quite simple; Funds, Instos, pro's who are allocating the capital and therefore taking the risk want a guarantee return on their investment.

Going out to the market for a capital raise and saying; "hey we pretty much announced our big news just last week and re-rated heavily would you like to give us money at our all time high?" - the answer would be no.

So instead the logic is; hey we have some serious news upcoming and this is a long term value add project. You can get onboard now and then you'll be guaranteed to be in profit after we raise. - the answer is yes.

there is a multitude of different variations and obviously this is a generalisation. Raising to some funds and instos prior to news can actually be super beneficial because at larger market caps it's only the funds that are going to move and push the price on volume. There's not much incentive to do so unless they have a lower average. So having fund support on the register is good when they're working with the company and not just taking scalps of 20% profit.

In VMM's case the raises have pretty much went internally. And huge amounts cornerstoned by the top holders. So that's why the last raise had so little selling because most of the money went to people holding it all.

The selling that we did see was relatively low volume and probably mostly traders. IMHO we've got more than enough capital to keep drilling as auger drilling is actually quite cost effective.

in terms of future raises, it just really depends on the angle the team wants to take. it could facilitate another one internal and keep the instos/funds on the outside again. I'm aware a few brokerages were desperate to get in on MEI and VMM but have missed both. noting that once MEI secured some larger insto/fund placing it really had the weight behind it to move the s/p.

If I was a guessing man, I'd be thinking post assay pre MRE. But I can't see many downside scenarios. if funds come on board pre-assay, then the s/p could explode upwards on results with fund money behind it. if it's a small one internal then there's going to be no overhang/selling again.

It's just probably the fortunate situation VMM is in knowing it's significantly undervalued in comparison to MEI imho and has a very tight register whom have the capital themselves to keep raising money internally should they so wish. The news flow keeps upping the upside potential here and so the value proposition still remains lucrative for these large existing holders to average up.

just my opinion though.

SF2TH