506m soi currenty. Add another 180m for 9 con notes @.005 Add another 14m shares for the above con notes as interest @ 8% Add another 300m for the 15 Copolus notes to be ratified at the net egm soon after just announced egm. Add maybe 20m shares for the interest on the Copolus notes. Add 25m shares to be issued that the company says the have commitments from investors @.1
= Aprox. 1.045b shares fully diluted before the spp to be pitched @.005. Then the spp shares. Maybe $5m [email protected] = another 1b shares. CAS will then have $5m in cash in about 3 months to maybe complete the bfs that was supposed to be finished by Dec2018 according to the May presentation.
Current market cap is $10m @.02 (last traded price) Soon the mc will be $10m with 2b shares on issue @.005
Great for the note holders and any new shareholders. Not so great for those holding now.
No doubt the company will say it has come to this because they weren't paid the $2.5m from the Posse iron ore project, which is being paid in dribs and drabs each month. But they knew of the problems last year after the June quarterly showed only $1.3m left in the kitty. The sp was about .03 back then, so they could've taken a private placement or an spp back then at .025 for 150m shares and raised around $3.5m after costs. The bfs could've been completed on time and any further cash would not be raised @.005. The soi would then have been 650m not 2b like it will be soon. Plus the Posse cash that's dribbling in over the next year.
All the money spent on the AIM is also now down the drain.
CAS Price at posting:
2.0¢ Sentiment: None Disclosure: Held
