Jan 3rd. $3.2M raised10 Feb 2023 13:58
The Jan 3rd RNS stated the principle amount as $4M & that the actual funds raised were at a 80% premium, hence..$3.2M raised for the company funds.
(July principle amount $25.2M, raised $19.7M, 78% premium)
That $3.2M is then overseeing 3 drills in the CC & keeping the lights on, at least until March 1st as per the Trading Update on 1st Feb.
It may be that AM fails in accomplishing the last 2 of the planned 3 drills. So perhaps again a similar raise is on the cards, ie $3.2M cash or $4M ‘in principle’ or 20 bond securities @$200k ea.
I suspect / hope that the 3 drills have been accomplished,
and so reckon a similar sized raise will still be carried out, this time covering the cost of a single horizontal ?
With the crash in the sp, the bond conversion rates will be lowered. There were c.100 bonds still to be converted from july, plus additional 20 bonds from Jan.3rd, plus fully expecting another 20 bonds to be raised in March.
Previously was $0.1583 conversion hence the figure of c.150M additional shares being in those previous sp calculations.
Now we are looking at what… 7p ? & it equates to 8.4 cents.
$200,000 / $0.084 then gives c. 2.38M shares per bond.
There are currently c.120 existing bond securities, so a potential 285M additional shares IF the conversion rate drops to the above figure. So it is still perhaps doable for the Pi whilst bearing in mind a JV providing serious cash might be looking at c.50% holding.
In the very short term, the imminent downside is perhaps the bondholder. As 3% of the current mc is now only £600K, where then is the conviction in the investment from our UK based institutional investor who is allegedly acting as the anchor for the convertibles ? At the previous conversion rate it was then estimated the BH could hold c.37% of the stock, but at 7p it looks closer to 53%. aka Total control.
Raising an additional £3.2M finances thru the ‘anchor investor’ would then be the equivalent of almost 15% yet they refuse to hold, not even a TR1 which would set them back less than £600K…
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