Market cap is all that matter. Ppl fail to take that into consideration. Even if the pps is going down the market cap will go up significantly once the shares are issued and the O/S will be 2.8+B. btw- we should see a registartion with the SEC soon as required.
The good news of financing is suppose to increase the value of the company which it will do, the only problem is it happenes by additional shares.
I expect it to go down a bit after the SEC filing (hope I'm wrong). That's just how market reacts even if those shares are not available in the float for trading.
It will take a while for the market to adjust to the new shares number. After that, any good news will push the pps up as long as more shares are not issued.
Also another big pont that folks are not taking into consideration is that XKEM Nigeria owbnership. The Nigeria entity is an independent unit, now wholly owned by the parent company. It has 90M shares all issued to the parent company right now. There is mention of 20M shares of the Nigeria company to be issued to some individual. A that point the parent company won't have 100% ownership anymore. Ppl those who understand how capital structure is done for a company will know better. As and when the IPO of the Nigeria company is done, the parent compan will not own 100%. Pandey and all the management will own a lot of it. Wh shouldn't they ? If they work hard to make that company a billion dollar company they will take a big chunk of it. We the shareholders may get some small divident stcoks on that company for number of shares owned. But the parent company will own a lot less than 100%. If we get 50of it I'll be pleasantly surprised.
It's all IMHO. I do know how capital structuring is done inside out.
Experience is the most powerful tool in the world !
