RE: Reality2 Dec 2024 12:55
First things first, am I a holder? No. Then why am I posting? Because I am a significant holder of MSMN - GEX’s JV partner and I want our partner to be represented accurately, as enough damage has already been done by TW and his articles.
Edwood has presented a coherent (if slightly inaccurate) post with a clear set of accusations. Instead of just saying it is FUD, it’s important to respond to this in a concise and robust manner. So here is an accurate breakdown of the facts:
Drill schedule:
The drill schedule is as he described. 10 days for the report to be filed with DEMIRS and once the drilling starts it’ll take 50 days approximately to complete and it’s usually a week for flow testing etc. Will the drilling start in December? Difficult to say but the BOD are confident but ultimately it’ll depend on the third parties involved. If it does start pre Xmas, we are looking at mid Feb for results, if it does roll into January Edwood’s timescales seem fair.
BOD Reward shares:
Yes, the BOD will receive 15,000,000 shares for starting the hussar drill and 6,500,000 for the resource upgrade. They’ll also receive another 10,000,000 when drilling at Mt Winter begins. The initial 21.5m shares is 22% dilution. This was made clear in pages 189-190 of the prospectus - Link Below.
It is important that all new investors know this but for those who have taken time to read the prospectus this is not new news.
Alpha Fund:
The alpha fund hold 7.77% of the company and the lockin date for the shares is January 2025. Then they will be be able to sell down those shares should they want to. The shares were acquired for nil consideration. However, Edwood is incorrect in saying this will add 7.77% dilution to the BOD 22% on January if they sell. These shares are already on the books as per the recent RNS.
Will they sell? Tough to say. They can sell and derisk pre drill for pure profit, or they can hold and realise much higher prices. Ultimately we will have to wait and see.
Warrants:
The are a series of warrants also to be converted. These can be seen on page 189-190 of the prospectus too. There is a total of 20,488,262 warrants to convert at a dilution of approx 21%.
Drill Chance of Success:
This can be seen on page 252 of the prospectus. The table states an 8% COS, however, It’s important to read through the summary of risk. This fleshes out the table data and will allow you to determine the risk percentage for yourselves. Open to interpretation but percentages of 33% have been suggested.
As investors or prospective investors I’d advise you to read through the prospectus or at least the quoted pages. The accusations are not without fault but it’s simply not good enough to label it as FUD and move on. If Hussar is a success then the dilution will be of little consequence. But it is essential investors know what they have bought and the facts.
https://wp-georgina-energy-2023.s3.eu-west-2.amazonaws.com/media/2024/07/Geron
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