Nils, it's not just about the cash it's also what they plan to do with it. The request to dilute under the terms of "General reason's" means that they can just continue with out communication, obligation or commitment. In terms of being at the bottom of the curve we have said this many of times yet the dilution continues at a faster rate and with bigger discounts. The last year has seen about 75% dilution. Now they want to continue to dilute further with reason. The last dilution was equal to their yearly Administration costs (wages), because they are paying themselves top end wages and bonus shares for a company that has no income, no cash reserves, no feasible asset, whilst trying to run two exploration projects. To answer your questions directly. More dilution to no money in the bank, to pay for more inactive management wages, due to no income and no delivery of a feasible asset which prevents them from taking loans or financial vehicles. Any new cash is a sign of confidence, well they clearly recognised their own poor performance which is why they discounted so heavily last time and ruined existing shareholder value. The brokers made 250k the Company gained 350K the existing share holders saw their holding dilute by 29% and the new shareholders have seen their holding drop 40% in just a couple of weeks. I don't know what they were told about the company, but it certainly wasn't it's history or current performance. Confidence no, gullible possibly, unprofessional definitely. Also if I may a word of advice "selling at an alltime low isnt an option to me.... and i know how it feels :(" is the reason and attitude why so many are still, have lost so much and will probably lose their entire investment.
With all the selling, the BOD will be nervous and will probably heavily discount to sub 0.001. They only have themselves to blame, the last big discount dilution was just lazy and inept on their part. I think before asking for the Authority to dilute further for "general reasons", the BOD should look at the overwhelming Administration costs, reduce their pay by 80%. They need to compensate themselves in relation to the company status. "A non profit making, limited activity, cash depleted seasonal exploration business", not a well financed operational big mining house.
The trouble is this company cannot afford to spend money developing two assets. It's not cash rich, there are no financial agreements, loans or other financial platforms it has access to. Further operational income looks to be nil for the next two years minimum. Therefore the business is set to fail. However the BOD are going to line their pockets until they are kicked off the AIM.
I won't sanction the power of further dilution to this BOD, without Bird having supplied a specific explanation as to the need for this request for extra shares. Also, the last placing price was derisory and as you say, those who bought in after that, for whatever reason, are already 40% down. They were stitched right up and it can't have been by accident.
I feel the problem is that the results are due after the GM. If the BOD gets the 'no' vote on these extra shares being issued, then the sp will drop further. If it gets a 'yes' vote then the same situation could occur, as the reasons behind the share issue are unspecific. General purposes!
So, a really positive impact of the sampling results, should they prove good, may be difficult to achieve, as we could well be starting from a lower low than we are seeing right now. Terrifying really.
I can't blame anyone for bailing on that last RNS, even though sampling results are not far off. The management here is so very poor, and not many shareholders will trust that the money from any additional shares will be put to good use.
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