Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
What I can't understand is.
Why could he have raised at 30 or even 25?
Omicron and oil and the delay on the well and so on, took this down close to 20, so the placing wasn't as painful as it might have been.
Would this placing still have been at 20p if the sp was riding high?
At some point one has to decide whether things will pan out, or if one already perceives them panning out.
Anyway, we will see. Yes, there's definitely value here, and we all, including me, want to be in a stock run with a gambler's streak or we would be in something boring and solid. At least Art is actually building something rather than letting it tick over, that is to his credit.
This is why I ask whether he is managing the assets successfully. Funding for cuda is fine. Funding for operational reasons is worrying. Why couldn't he do two separate placings, 1.5m and 6m or something like that so that we know what is ring fenced for what. Or just say x is for x, y is for y.
A dilution for cuda is value accretive. A dilution for working capital is well, dilutive, it suggests the company needs propping up and the value is less than assumed.
I feel like the problem with the placing is the wording as LB28 says.
It's a big dilution. For cuda that's ok, you want it, you pay for it, dilute but expand by as much and its worth more to investors than the share capital.
It's the 'and for general working capital.'
Why not say what that working capital is for, given the audacity and given I'm fairly sure he stated there would not be placings for operations.
What I want to know now is this, plain and simple: does Art have this skill? We know now he doesn't have the small fortune, and we will provide that, but that's why stocks are floated, that's the game.
Can he do his part, that's the question?