RE: Warrants outstanding26 Sep 2021 15:52
Warrants and options are nothing rare or unusual in juniors, I think in ACPs case it is two fold, there is a past were the company struggled and needed the warrants to move forward, the path forward is a strong one now....and secondly it has been highlighted more here due to one person heavy handedly selling the warrants into the market for one purpose so they can have funds for their own venture.
This has caused swings were there should not have been and there are quite a few people here lucky to have put together decent holdings because of Kabunga, so in a way a double edged sword. You will be afforded a more generous entry now too. He can only sell them once and the more out of the way before production the easier for the share to find its true value without any resistance in the future.
There are very few companies on AIM at this stage in development yet with such a small capex to attain a fair sized NPV, in a market/commodity on the verge of a super cycle due to the explosion of EVs. But also a high quality product with peer competitive costs. The risk reward has to be amongst the lowest at this price vs the potential value in short order.
Note that in the Capex thoughts mentioned before don't foget the FEED and the build pay later option. It is a very low risk for the Chinese to build this plant and they also might secure offtake, though that reduces prepayment elsewhere but if it secures a bigger chunk of build money then better.
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