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Now that I think of it, one of the listing requirements of the TSX is the NI 43-101 report. I'm not well versed in mining laws but dropping the TSX would let NioCorp get around these mining standards. I doubt the Nasdaq has these requirements.
https://www.rangefront.com/blog/what-is-a-ni-43-101-amp-what-is-it-used-for
An NI 43-101 report is a summary for potential investors of scientific and technical information for a mineral exploration, development, or production project. This report is required for listing on the Toronto Stock Exchange (TSX) and TSXV.
Intended for the investing public and their advisors, who in most cases, are not mining experts, the NI 43-101 technical report is meant to be complete and fair in nature while also being able to be understood by a non-scientific audience. Therefore, the challenge for the qualified person preparing the report is to present relevant information as well as the nature, importance, and limitations of the reporting, within the guidelines of disclosure and while keeping the reports simplified and understandable to a potential investor.
One effect of the Bre-X scandal was to strengthen securities regulation in Canada. National Instrument (NI) 43-101 implemented Standards for Disclosure for Mineral Projects after Bre-X imploded in order to improve the transparency of mining projects. Since many companies in Canada are engaged in mining operations, it was considered imperative to establish a regulatory authority over the industry’s geological practices.
maybe he's taking a realistic view on the investment. Its the same view I took 2 years ago and sold my shares.
Mark loaned the company with 10% interest. There was no risk for him and the loan was 100% in his favor.
Maybe if you had the ability to look at this investment objectively, you would realize some people aren't bashing - just being realistic and asking tough questions.
give it up monocle lol not worth your time. You'll never win this battle presenting facts to the most powerful NioCorp board protector 🤡
I'm still interested in the story here so I lurk this board here and there after selling my position years ago. Goodluck to the old timers and hopefully everyone's commitment pays off.
I'll go back into hibernation before the pitch forks come out. I'm not allowed to post here without owning the stock 😀
Hi papapradhan,
I've been lurking this board on and off since selling my remaining shares during the Feb 2021 FOX interview. The long time board members may remember me.
I was invested for 7 years and sold during the run up. I didn't like the way the financing search was going - it seems I made the right call.
This project should have been financed when interest rates were low and the stock market was on a bull run. Its sad to see the project not reach its full potential. If the NioCorp story changes, I'm ready to jump back in because its a great opportunity. I'm watching from the sidelines right now.
I've noticed some of the other long time investors have also dropped off slowly. I wish this project success and best of luck here.
Reverse split
Why do you ask?
I'm curious why they didn't include that in the NR like they did last time. I'll have to look deeper at the funding agreement.
Did you also ask him about the floor price for conversion?
I think they hedge their bets really well. That's probably what the warrants are for. These financiers always come out ahead.
GM, Boilermaker, thanks for the reply.
I don't disagree with your posts. I guess we'll have to wait and see how it plays out.
An objective question is, why go with a convertible security vs private placement/equity financing? Why take the risk with Lind? The first answer that comes to mind is no one else is willing to offer money. It just seems suspicious to me and again its just my opinion.
My risk profile has become more conservative over the years and I was happy locking in gains while I had the chance. We all have to wait to see what happens - we can only speculate at this time on the outcome.
Can this be extremely dilutive though? What happens if the share price falls to around 0.60, that means their conversion price is ~0.50 and for 10 million dollars, thats 20 million new shares.
Also, I think its the conversion of the stock and pushing the price down while shorting it. I recall in the previous Lind agreement from a few years ago, there was an agreement that Lind could not short. I don't see that in the recent Lind financing.
https://en.wikipedia.org/wiki/Death_spiral_financing
http://coralcapital.com/toxic-financing-explained/
Lind is well known in the mining industry for its dangerous financing practices.
Search google for "lind partners death spiral" might give you an idea.
I don't mean to scare anyone and maybe this might work out in a few months if financing is achieved. But this is too speculative for me.
looks like the loan amount was @ 20% of the loan face value which makes the share value US$.80 or so??
Hi Jim,
What is the monthly limit for the conversion? And is there a floor price?
Why did NioCorp go with such a painful financing with Lind? There is no limit to the amount of dilution here if I’m not mistaken?
Why couldn’t NioCorp wait for the bigger financing to avoid a convertible security? Or a private placement?
Send your contact information. I'll forward it to you.
I never received an answer back. I'm glad I'm no longer a shareholder.
Isn't that what the loudest investors here do? Follow blindly?
There are a few here that are capable of critical thinking but they get chased off.
Thats for the convertible security portion. They can't start converting shares until 4 months has passed.
But the warrant is available anytime.
NioCorp will receive net proceeds of US$9.65 million from the Funding. The Face Value of the convertible security will have a 24-month maturity date and can be paid in cash or be converted into common shares of the Company ("Shares") at a conversion price equal to 85% of the five-day volume weighted average price ("VWAP") immediately prior to each conversion. Shares issued under the Funding will not be freely tradable in Canada until after a 121-day lock-up period following deal close. The Funding agreement contains restrictions on how much may be converted in any particular month. NioCorp also has the option at any time to buy back the entire remaining balance of the Funding without an early repayment penalty. In connection with the funding, Lind will be issued a warrant to purchase up to 8,588,000 Shares at a price of C$0.97 per share for a period of 48 months.
I'm curious if Lind exercised their warrants at 0.97? When is this information available?
I'm guessing the unhappy investors took the opportunity to exit their position. There's no reason to complain anymore.
If they're unhappy and still have shares, its their own fault.
Lol back to the waiting game.
Financing or maybe an enforceable scandium contract would be great.
Hopefully they can buy out Lind sooner than later. I don't want to see that name again.
Why?
He was on there to promote the stock and increase investors. He reached a wide audience. But that interview doesn't indicate whatsoever that financing is coming soon.
Smart play. Nice run today but I don't see it being long term without financing news.
Haven't heard anything back yet but I'd like to think my strongly worded email caused Mark to go on Fox LOL
Congratulations to all the longs today. I hope the party continues.
I took the opportunity today to sell my remaining shares. I always bang my head for not doing it in the 2015 run-up so I took advantage today. Also I'm still concerned about Lind and the stranglehold they can have.
I still believe this project is a great opportunity but I would like see more concrete evidence that its financeable. I'll buy back in when the time is right.
I don't think it will be anything new.
But its good exposure. Thats a wide audience and a big news network
Nice to see some critical thinking.
You won't see any of the self-declared believers of this stock answer this question. Its much easier for them to follow blindly.
I'll take the initiative of asking Jim.
I see a huge wall at 0.90. Not sure we'll be able to break through
NioCorp Executes Option to Purchase Key Nebraska Land Parcel for the Elk Creek Superalloy Materials Project
https://www.niocorp.com/niocorp-executes-option-to-purchase-key-nebraska-land-parcel-for-the-elk-creek-superalloy-materials-project/
Where does it say loan? Did you read it?
NioCorp is not getting a 10 million loan. Don't post false information.
They are getting 10 million from the most toxic form of financing available. A convertible security.
https://www.nasdaq.com/glossary/t/toxic-convertible
The only thing good is the 4 month lock up period. After that is the death of the share price.
This is such a ballsy move from Mark I have to believe that something good is coming.
Agreed. Mark must be confident.
There's no excuses this time. This is an actual deal with the devil if 4 months go by without financing.
I think we can see way more than 8 million share dilution. There is no limit on the number of share dilution since its calculated using the five-day volume weighted average price (“VWAP”) immediately prior to each conversion. There is also no floor price and no agreement not to short.
Lind could technically drive the price down and that allows them to convert more shares. Look up death spiral financing - Lind is a predatory lender.
Lind Partners has been at the centre of a number of controversial funding deals with junior mining companies over the years.
I have a neutral outlook towards todays news. I can see it being positive in the short-term and it can be positive long-term if financing follows through.
I don't want this to turn into a "deal with the devil" where its 6 months from now and financing still isn't in place and Lind is playing games with the PPS.
Agreed. They'll deserve a big raise once financing is achieved.
Sorry, that wasn't directed at you.
A COO is a COO. Whether the company is making money or not.
And where did you read that those salaries are from profitable companies?
Its not surprising to be on the low end right now. You're comparing against companies that have revenue.
What's the average salary for companies that are operating at a loss? That would be a better comparison.
This just shows how desperate NioCorp investors are LOL
We need all the help we can get.
You need to take it down a notch. You're just noise at this point.
Keep the complaining/venting down to once or twice a week like me.
Good for you.
Would you be happy if you had to wait 7 years for that type of gain? I think not.