RE: China Pentoxide production5 May 2024 10:24
If they do successfully raise funds here, I’m thinking £15m at 1p a share. The 3p raise was never going to be the end of it, imagine allowing PI’s to get shares at the 1p level or lower and not allow II’s the same privilege. It will be a lot of dilution, but that’s the risk with penny shares. If this were to happen and we’d be close to 4b shares in issue, I can’t see how we’d get beyond 12.5p / share valuation as that would be a 500m market cap.
The other option is we go bust, but I see this personally as less likely as II’s were very keen to get in at 3p, so I’m sure they will be all over 1p if it’s offered. I know it all hinges on what V price will do, but II’s act rationally and if they know a turn in price is on the horizon they will invest for that future event. There’s already enough money on the table - for example SPR and that £15m non refundable loan, they won’t want to lose that.
Nothing I have posted here should be taken as advice, just my opinions, DYOR.