Niocorp Developments Ltd (NB)

[tedro84]

That’s not my suggestion and not mine to defend. I can see how one may be suspicious of the high fees and question where they went (mostly to the underwriters and advisor that agreed to terms when the SPAC was formed), but you know full well I’ve made no assertion that the sponsors received any of the transaction fees, other than my one today that I think the $400k may have gone to them for promotional activity reimbursement.

I’ve asserted multiple times the sponsors have $8.5MM invested through their initial investment in GXII. They have 4.6 million shares (currently locked up) to show for it, plus the other contingent shares and warrants. I made a slight miscalculation this morning as I incorrectly remembered it being 4.9 instead of 4.6, but wouldn’t you consider the chance to acquire 4.6 million shares for $8.5MM pretty close to free of risk?

I’m also asserting, as of today, that you are misrepresenting the overall transaction costs. They were approximately $20.3MM cash. The earned shares and warrants as a non-cash portion of the deal have nothing to do with this and if they are never awarded/exercised will in no way affect that dollar value. I’ll give you the benefit of the doubt that you knew this. I’m confident you understand that section of the 10Q. It’s unfortunate you choose to misrepresent it. Your own quote even acknowledges that GXII proceeds, net of costs they incurred, was $2.2MM. Please read, and explain if you care to, the first line in this snip from the top of page 16.



Now why does all of this ultimately matter? First, it’s unfortunate that you misrepresent the transaction to your followers, but mostly because you act as if the sponsors have something on the table other than a quick method to make money off of their $8.5MM initial investment in GXII when they were otherwise running out of options. Sure, your success is aligned with theirs in so far as they make more money off of a rising share price, but to come to any conclusion after reading through the S-4 that they had any other interests than making money off of their sponsor fees is quite dense. NB didn’t present the best long term opportunity for them. It presented the best opportunity to make money on the GXII investment.

Your conclusion that they lose their investment if NB is never financed fails as soon as you acknowledge that come next March they are free to start selling, likely at a decent profit, unless of course, and I know I’m repeating myself, you believe there is risk the share price drops under $2 at that point.