Storm that 0.15p beach head15 Jul 2018 10:30
For the benefit of the lurkers, who are gathering because they see the Ask : 0.15p spike on Friday.
As the Bid approaches 0.15p, so do the Kamikaze Sellers appear.
The Placing raised £600,000 by selling 400million shares, with warrants for 200million shares.
So if you subscribed for 10million shares, you paid £15,000, and got warrants for 5 million shares, as well as the 10million shares. The Placing crowd wants to sell the 10million shares for 0.15p, so they get their £15,000 back.
With no money down, they lose nothing if AXM folds, but if it shoots up, they can buy back in at 0.22p, fixed for the warrants.
You who are warrantless, have no such luxury.
If you want in, somebody has to sell.
If the chart goes asymptotic, who is going to sell you any?
So, it's Gallipoli again, with the warrant holders manning the defences, and you have to storm the 0.15p line.
Previous price rises have already taken out a good chunk out of the 400million, so there might be only light resistance this time.
The good thing is, there are lots of shares to be had around 0.15p.
Tomorrow will see the Bid go near 0.15p, and heavy selling will commence.
Soak them up, as the Turks spray you with machine gun fire. Every bullet a share.
At the end of the day, you will have millions of AXM shares for 0.15p.
Let us say a warrant holder sells you his (or her #TIMESUP) 10 million shares at 0.15p, and keeps the 5million warrants. So, you put down £15,000.
AXM goes to 0.5p
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You make £35k = £50k - £15k
The Placee buys back 5 million shares at 0.22, and makes £14k = £25k - £11k
AXM goes to 1p
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You make £85k = £100k - £15k
The Placee buys back 5 million shares at 0.22, and makes £39k = £50k - £11k
There is a two year deadline for exercising the warrants.
Peak value could easily be five years from now, as mines come on stream.
Do remember there is a legal requirement to declare your ownership, if you cross the 3% threshold.
There are 1,888.73m in issue, so 3% is 56,661,900 shares.
Don't forget S&S ISA.
Shares like Lloyd might go to 3~4x, so it's not an issue.
If AXM goes to £1, you'll wish you did.
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