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The last cash raise was a placing as the heading you utilise states, Hazbeen, confined to professional investors as was the book build in Canada, i.e not a rights issue to all existing shareholders.
The equity element of the prospective funding package en route, hopefully, is very likely to be a rights issue available to all existing shareholders - sasa
The cornerstone is hoping they remain the cornerstone. And aren't replaced by another cornerstone offering higher price. The price won't be everything if it a strategic horizonte will select based on what else they bring to the table (offtake? develop vermelho?) but will still be a consideration. We mustn't assume only one entity was prepared to offer $100m for stake in world class assets. All imho.
btw I expect the price will be setup much closer to the raise.
I guess we cannot rule out VWAP either together with the other criteria.
Price could be the one after the credit approval RNS has been released
ST,
That is the big question and I know what you are getting at here. If the cornerstone is thinking like me and says I want it cheap as possible. But it is not as simple as that.
There will be a criteria being used to work out a fair strike price.
Existing holders dilution impact, Nickel prices etc. I am not sure sets this price, probably a collective agreement.
For me, I would be happy with 8p minimum
Hazbeen
Resolution 10 from that meeting might help clarify matters. Section A. part i. of Special Resolution, see below.The resolution clear states "rights issue" and "to ordinary shareholders in proportion (as nearly as may be practicable) to their existing holdings....."
TDT
Special resolutions
10. THAT, subject to and conditional upon the passing of resolution 9, the Directors be and they are hereby empowered pursuant to Section 570 of the Act to allot equity securities (within the meaning of Section 560(1) of the Act) in the capital of the Company for cash pursuant to the authority conferred on them in accordance with Section 551 of the Act by resolution 9 as if Section 561(1) of the Act did not apply to such allotment provided that this power shall be limited:
A. to the allotment of equity securities for cash in connection with an offer of, or invitation to apply for, equity securities (but in the case of the authority granted under paragraph (B) of resolution 9, by way of a rights issue only):
i. to ordinary shareholders in proportion (as nearly as may be practicable) to their existing holdings; and
ii. to holders of other equity securities, as required by the rights of those securities or, as the Directors otherwise considernecessary, and so that the Directors may impose any limits or restrictions and make any arrangements which they consider necessary or appropriate to deal with treasury shares, fractional entitlements, record dates, legal, regulatory or practical problems in, or under the laws of, any territory or any other matter; and
B. to the allotment otherwise than pursuant to paragraph (A) above of equity securities up to an aggregate nominal amount of £5,000,000, and shall expire at the conclusion of the next Annual General Meeting of the Company following the passing of this resolution (or, if earlier, 15 months after the date of this resolution), save that the Company may prior to such expiry make an offer or agreement which would or might require equity securities to be allotted after such expiry and the Directors may allot equity securities in pursuance of such offer or agreement as if the power conferred hereby had not expired, and any director or officer of the Company be, and such director or officer of the Company hereby is authorised, instructed and empowered, acting for, in the name of and on behalf of the Company, to do or to cause to be done all such other acts and things in the opinion of such director or officer of the Company as may be necessary or desirable in order to fulfil the intent of this special resolution.
as far as i understand, the vast majority of the equity will be raised via a placing with one investor. We will be offered a token amount via an open offer - i wouldn't expect more than a 1 for 10 offer.
The thing here is , you only take up the rights to buy in the open offer if the price will be lower than the market price .
So the market really needs this to get to 10p for us to see at least a 8p or higher open offer price
JM needs to time a release of some positive news and then straight away release the open offer , that’s is how I expect it to work to get the best price
TDT
Thanks
So 7.5p recent raise was a rights issue
But the final equity raise due as part of debt/equity portion will now be an open offer , which differs as I stared below .
Basically minimises dilution to existing shareholders
Is this correct ?
This is what section 9 of the notice of the annual general meeting of shareholders on May 17th 2021 actually said, see below. It specifically states ".....an offer by way of a rights issue...."
TDT
9. THAT the Directors of the Company be and are hereby generally and unconditionally authorised and empowered in accordance with Section 551 of the Companies Act 2006 (the ‘Act’) to allot shares in the Company and grant rights to subscribe for, or convert any security into shares in the Company (‘Rights’):
A. up to an aggregate nominal amount of £5,000,000 (such amount to be reduced by the nominal amount allotted or granted under paragraph (B) below in excess of such sum); and
B. comprising equity securities (as defined in section 560(1) of the Act) up to an aggregate nominal amount of £10,000,000 (such amount to be reduced by any allotments or grants made under paragraph (A) above) in connection with an offer by way of a rights issue:
i. to ordinary shareholders in proportion (as nearly as may be practicable) to their existing holdings; and
ii. to holders of other equity securities as required by the rights of those securities or as the Directors otherwise consider necessary,
@hazbeen-it loves and thrives on you responding to it's rubbish-if you filter then it has no audience and either gets bored or someone stops paying it.
Oh and have a look at the monthly graph on TSX ,
There is no hard selling at all.
Just be clear , we are talking about an open offer NOT a rights issue
An open offer - this is also known as a pre-emptive placing or placing subject to clawback and gives all shareholders a guaranteed right to participate. It differs from a rights issue in that there is no option to sell your entitlement in the market. The options are simply 1) take up the offer or 2) let it lapse.
ST - As the biggest and as far as I am aware only dedicated liar we have had here I find your tone comic rather than insulting.
Source was Jeremy Martin in thr last BRR Media interview. If you were actually at all interested in HZM you'd have watched it.
Hazbeen,
Cornerstone price might include VWAP as a factor but also potentially might not. Right now I would rather it didn't, justification would be the ability to acquire volume at scale not possible on the open market.
The company also said it would do an open offer too, presumably there will be a preset price for that which will not be dependent on VWAP.
This was raised via a bookbuild process.
I cannot see any mention of VWAP price used.