RE: Motley 🃏 Fool (Parody) 💥20 Oct 2024 18:23
Motley thinks there will be more dilution:
Time to buy?
As encouraging as the firm’s progress has been, there’s still a long road ahead. Even if mining licenses are granted, transitioning to a production-ready enterprise comes with its own set of headaches and costs. And while the business has around £8.7m of cash on the balance sheet, that’s likely not going to be enough to see this transition completed.
Since Helium One isn’t likely to be eligible for low-cost debt, management’s fundraising activities will likely have to be done through equity. And, sadly for shareholders, that means dilution, which is something that’s already started taking place.