RE: SXX - Share dilution3 Aug 2018 12:39
Good morning, KOH. When I made my first investment in Sirius Exploration in April 2009, there were 131,572,084 shares in issue. Should all the convertibles become equity, and by the time Hancock’s new paper is issued we are are looking at ~5.7bn shares in issue. And whilst of course I always knew - as is the way with junior explorers - that progress would be funded by issuing new stock, I never would have conceived that my initial investment might be diluted by a factor of 43. Or 4,300% if you prefer. Yet today, you are suggesting that taking that dilution rate up to 8,600% would be acceptable because “this company has a such a great potential that even a half of the expected ROI can be considered a great investment“? Well, I say no. No it wouldn’t have made it a great investment. I say no because quite frankly it does fit with criteria such as timescale or, indeed, with the risk/reward profile my money th3n commanded. Trust me, there were plenty of other AIM cash machines you could have played with in those heady days when doubling your money in a day was by no means impossible — or infrequent!
Some of us have kept our principal tied up and we’ve supported this company through thick and thin for many, many years. Our investments and the stability they afforded enabled Chris to pitch this whole project as something significant and not some fly-by-night chancers looking to turn a fast buck, just at that key moment when he initially sought to get many perhaps sceptical, down to earth, Yorkshire folk onside and behind the project. He sold his idea to landowners and interested groups when looking to tie down royalty agreements by pointing to the company’s London listing and market capital. Many of us stuck around through the botched first planning application in 2013, and we were cheerleaders for the company, drumming up support and, indeed, writing the the NYMNPA endorsing the aplication.
Would anyone have done that only to find themselves diluted by 8,600%? Indeed, would you? I’m, not so sure. And there where would our company be?
Regards,
per ardua ad astra
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