Dec 2015
Planned to raise $1.125M (75m shares at 1.5c) to be used as follows:
$0.5M to list on the catalyst board of the SGX - this never happened
$50k to cover fees
$0.5M to make payment to its contractors and suppliers
March 2016
Planned to raise another $1.8M (918m shares at 0.2c) to be used as follows
$0.4M for development of the facility
$0.2M for initial payments for smelter
$0.95M on working capital
$0.26M for expenses relating to the offer
What did we learn from this?
1. The March 2016 capital raise (only 3 months after the December CR) was conducted at a 87% reduction to the December CR.
2. GMC were unsuccessful in listing on the SGX - who knows what that $0.5M ended up being used for.
3. Since December 2015, GMC had successfully raised $3.0M from shareholders. Of this $3.0M, only $0.6M was intended to be used on development of the facility / initial payments for the smelter.
This means that the remaining $2.4M or 80% of the proceeds were used for "working capital" payments to contractors and suppliers.
And there are people on here that think a CR is a good thing?
What exactly have management achieved with the $3.0M so far?
It actually wouldn't surprise me if the Toad was concerned by what management may do (or fail to do) with his $10.0M USD.
Maybe he would be happy to proceed with a different management team, that is able to actually deliver something?
Point 11 to my previous post - What were the reasons given by Pak for refusing to go through with his binding investment. Specifically, did he indicate at all that he would be happy to proceed with a different management team?
GMC Price at posting:
4.2¢ Sentiment: None Disclosure: Held
