Interesting to bring this post back now. Lot's of depth and possibilities and interesting we are now within the 1-2 year period
Okay, hardlesson, I'll engage. However, to shed sufficient light on the matter in the interest of clarity, my remarks will be both lengthy and possibly the subject of much debate on the board.
First, I like your assumptive close re: conversation w/Eric. I'm guessing you have a background in sales. In any case, I will neither confirm nor deny. Second, on a personal note, my prior picture was of my Daughter (replete with facial henna tattoo) taken during a trip we took to Playa del Carmen 14 years ago. Although I'm quite proud of the woman she has become, the image did not convey the mature profile I wish to convey.
My thoughts on other matters:
As we all know there are three ways for a private company to fund rapid growth. 1) Re-investment of profits from ongoing operations (slow track when substantial investment is required), 2) debt financing which encumbers sustainable growth during repayment unless, of course, operating margins are large and swift, which I don't see materializing due to the timeline of project development and 3) gain access to public equity markets (either through an IPO or a reverse merger with an established public entity).
Quite obviously, we are observing a developing reverse merger effort. What one needs to realize is that a R/M is NOT the endgame. A merger, by and of itself, provides no capital. So, it necessarily follows that a Reg. A offering will be floated as the source of capital for developing the lithium extraction and refinement project. Without over speculating the immediate post merger share price, a $100 million capital raise would require an offering of between 600 million and 1 billion shares. I can NOT fathom a scenario where a merging entity would subject their newly acquired ticker to this kind of dilution and inflated share structure.
So, I must consider the possibility that a reverse split of 1:40 or 1:50 will be announced shortly after any merger and ahead of floating a Reg. A capital raise. Obviously, this comment will raise the hackles of many here but accredited/institutional Reg. A investors would be taken aback by a share count approaching 4 billion, sans a R/S. However, just such a strategic maneuver would quicken a future QB or NASDAQ uplist.
Consider this: A reverse split would allow them to price a $100 million Reg. A capital raise at a little under a dollar, requiring the placement of say 120 million shares. At the end of the maneuvers the share count would be less than 200 million, project development would be underway and longs would begin to see the phenomenal advance in share price hoped for. A shareholder expecting $25 pps without re-structuring is simply dreaming and not being realistic. However, under the scenario I have elucidated a current 10 million shareholder could see $25 pps on their reduced holding. That would net a cool $5 million return which I estimate as a 25:1 gain.
Again, I expect substantial push back on these assessments, but I believe this is the path we are on. It will take patience to hold. My plan is to exit with stealth immediately upon the inevitable post R/M spike yet ahead of the R/S announcement. I will then look to re-enter as the Reg. A capital raise nears completion and before substantial development progress is achieved. My judgement is that this process will bear a timeline of 1 - 2 years. As you say hardlesson, Respect and GLTA.
