Hey guys, was doing some DD and thinking this surely cant be...

Hey guys, was doing some DD and thinking this surely cant be right?

Am I correct in thinking that....

Current SOI: 1,343,744,822
SOI after 30:1 = 44,791,496

Assuming it can hold 0.2c until the consol the post consol price will be 6c and they are doing the RI at 2c?? That represents an RI at 0.067c at current prices.
Pretty shocking form. Worse than ODN. A few words come to mind here but ill let you use your imagination.

So as its 3.5 for each one held and its underwritten there will be 201,561,732 on issue after this.

Half Yearly states that you have $270 cash + the $500k from the sale of the KORID shares + the $650k con loan (ill get to that in a sec. wtf?) + $3m RI = $4.4m cash

So MC at 6c post consol would be $12m with $4.4m cash = EV of $7.6m

Until a few weeks ago when the dropped all of this that was roughly the EV. But the RI will have destroyed that chance. Worse case I guess is SP opens at 2.2c giving a MC of

MC = $4.4m @ 2.2c with $4.4m cash and a zero EV.

(I haven't bothered to dig through and see what other assets they have other than the V/U project and the new 50% VFB acq)

The worse part of all of this in my opinion is the Con note. They are doing a $3m raise, there is no need for the con note. I'd be interested to know who the con not went to, although its not half obvious. I really don't understand how they can even justify the con note as all it is is offering a bunch of their mates a 30% discount to the already shockingly low RI price. There is no reason for it to be a con note as it is being converted into shares at a fixed rate of 30% discount to the RI. From my experience, which granted isn't much more than a couple years, Con notes are issued so that they can convert them to shares at a discount to the SP at a future date. I guess as protection to the note holder that they wont ever be out of pocket. Also con notes lead to negative SP pressure almost always.

This is not a great setup at all in my mind. Pity coz i was pretty excited when I read the vanadium and uranium project they have and the 50% acq of the VFBSS

Interested to hear anyone elses take on it and happy to be corrected if i'm wrong anywhere