I don't know why people continue to be hung up on the SPAC, and continue to be bothered by the notion of dilution. As you all know, I am not the biggest fan of the SPAC business combination, and would have preferred them to go another route, but a few things remain true to this point:
1.) Like it or love it, the SPAC was Niocorp's ONLY/best option given the cash burn rate and the amount of money we had left available for operations. You can't expect Mark to personally fund the company in perpetuity, and all of you hate Lind Partners so I know you don't want more dilution from that route. We are at the point now that you vote for the SPAC or either this company ceases to exist or is sold for pennies on the dollar.
2.) Dilution was going to happen regardless, and it was always factored to be about 20% of the fund raising. Yes, I would have preferred the 20% to just have been a max of 200M shares outstanding ($1/share), but obviously that wasn't going to happen and then SPAC is always going to get a slightly better deal since that is what incentivizes their shareholders to not redeem.
3.) The $200M shelf can remain a $200M shelf. It doesn't have to be offered and exercised, or it is potentially part of the shares authorized for the SPAC deal. Either way it is inconsequential as of now.
Everyone just needs to relax. The constant whining is exhausting to read at this point. This investment will either succeed or not, but you were in the same boat before the SPAC...now you just have a potentially higher chance of success. You can be disappointed with the method of equity funding being obtained, which I am to a degree, but you just need to accept and move on as we don't have the time or more for uncovering other financing options.
As others have mentioned, this SPAC is slightly different than others that have been detrimental because Niocorp is already public, and it is essentially Niocorp taking over and not vice versa. That does play a part in this and gives it further chance of success. This isn't a SPAC combining with a company for a standard over-valued IPO. Those often fail, but this is different.
Keep the faith. We may not get the glorious returns we were hoping for, but it looks like you weren't going to get those without this deal anyway...
AI
