Niocorp Developments Ltd (NB)

[Rader1977]

After some hiking in the lower Dolomites today and a visit to our new Italian home build-site (complete in Dec.!) in the beautiful Veneto, I can now relax with a Spritz Compari and digest the latest NioCorp news.

The recent Private Placement is interesting. Who was the purchaser of 250,000 shares at $4 and why did they pay a 10% premium over current share price? Sure, the agreement came with warrants, but unless the mystery buyer was confident the share price would significantly increase - those warrants are worthless.

I understand NioCorp's motive. They are raising capital and a PP is a good way to do it.

But the mystery buyer? Why didn't they just buy shares/warrants on the open market for a lower price?

I think the answer is because this is such an undiscovered company, with minimal daily trading volume, it is subject to wild price swings. 250,000 buys on the open market would spike the price much higher than $4 (just like the suspected recent liquidation of Yorkville shares has driven the price down to current levels).

We can also assume the unknown buyer has a direct motive to infuse the company with cash so NioCorp can continue operations and/or explore new opportunities.

Bottom line - This Private Placement is incredibly bullish. We can see on https://fintel.io/so/us/nb that institutions are also buying (green = new positions).

As we enter this holiday weekend, I may just have to switch to Stella Artois to honor our new PP mystery investor. 😏