PutzMueler
2 hours ago
3 billionaires on our board of directors and here we are talking about something so obscure and rarely done as to lower exercise price on warrants, to get cash, but it’s probably something they will do.
We can’t even expect our Board of Directors to Pitch in, for all the free shares and zero workload they got from Mark.
Tell your investors to Vote yes for a SPAC and R/S then blow up our holdings even more by doing something so desperately foolish.
Sounds like something Mark would say, **we will never do that**, and then do it.
SMH
TooSoon
4 hours ago
I really hope that the EMP is in the works with EXIM.
Engineering Multiplier Program
EXIM’s existing Engineering Multiplier Program (EMP) provides direct loans or guarantees of commercial bank loans for pre-implementation stage technical services for foreign projects. EMP loans have a maximum five-year loan repayment tenor, which may be folded into the long-term financing of covered projects if they proceed with EXIM support with tenors of up to 18 years and 22 years if eligible under the Climate Change Sector Understanding (CCSU).
The EMP is designed to generate additional exports of U.S. goods and services overall (the "multiplier effect"), since the foreign buyer is more likely to procure U.S. equipment and construction services for a project for which U.S. engineers, designers, architects, and/or environmental analysts undertook the feasibility study, design, and other pre-project work. EMP loans finance feasibility studies, pre-construction design, engineering, architectural and environmental services undertaken prior to commencement of the implementation phase of a physical project.
AlwaysOptimistic
4 hours ago
Hard to say. The offer to convert existing warrants at a lower price could be structured as an elective, not mandatory, allowing those who prefer to convert at the original $10+ in place. Getting money from willing warrants holders now is a win win for both NioCorp and warrant shareholders. NioCorp gets the money sooner to finance drilling and engineering and warrant holders get to convert at a lower price. Th has already stated that he is willing to convert all or a part of his warrants for a lower strike price. 1,000,000 warrants x $1.75 is $1,750,000. Would be nice to know how many warrants shareholders retain other than Th to get a better picture of how much money would be generated.
AlwaysOptimistic
16 hours ago
Good question. The options I have only seen in the past for the company to raise money are Private Placements, MS loans or money from the likes of Yorkville in exchange for shares which are diluting. Not sure if MS or GX BOD’s are likely to loan their own money or Belgians will step forward on a PP so it’s more likely we get more of the same: like diluting shares given to Yorkville or the equivalent. Instead of rewarding Yorkville on lousy terms, I propose rewarding NioCorp shareholders who purchased warrants prior to the GX merger disaster who bought warrants at a much higher price than today on the expectation that the GX merger would bring in $200,000,000 + and the share price would exceed $10+ after the merger. Instead, not only did the NB share price collapse because the GX merger brought little to no money to NioCorp but warrant holders share price has also declined though not as much.
The reason why the NB and NIOBW share prices have declined even more since the Railveyor CC is because of the announcement there will be a delay in EXIM financing approval due to EXIM now requiring additional drilling.
The only ones buying shares right now thankfully are those who believe NioCorp will raise the money to do the drilling, conduct more engineering and finance the revised FS.
But to push the share price higher, NioCorp needs to announce financing at a minimum to cover the cost of drilling which appears to be EXIMs only remaining contingency for loan approval. (Mgt has already stated a revised FS is not a pre condition for EXIM financing and addtl engineering has not been mentioned as an EXIM pre condition to financing approval).
My point is, unless NioCorp announces or plans to announce some non dilutive deal or less diluting deal with some entity to finance drilling, engineering or the revised FS, we’re likely to see more of the diluting Yorkville style financing. That being the case, why not extend an offer to existing NioCorp warrant holders who actually have skin in the game instead of Yorkville or the equivalent. The way to prevent warrant holders from dumping their shares would be to put a condition that warrant holders cannot sell their shares for say 30 or 60 days giving the share price enough time to recover on news that NioCorp raised money to cover drilling and the drilling commences.
In either case, an announcement of short term financing to cover drilling costs will raise the share price which would likely benefit the share price for all shareholders regardless if the financing comes from a PP, a loan from EXIM or MS (unlikely), a revised exercise price for warrant holders or Yorkville.
Regarding replacing MS, sounds good in theory but that is unlikely to happen anytime soon and most likely won’t happen until NioCorp receives EXIM funding.
The more likely scenario is that MS retires or leaves the company after EXIM funding along with his 2,500,000 shares (25,000,000 pre split) plus whatever new stock options/warrants he’s received post split and Scott Honan takes over as CEO. Until EXIM financing occurs, I don’t predict MS is going anywhere.
Happy to entertain any addtl creative ways other folks have for how NioCorp can raise money for drilling, engineering and completing a revised FS because until we get an announcement on short term financing, I am concerned the share price will bounce around just under $2.00 intel a PR re short term financing or an off take gets released.
AlwaysOptimistic
16 hours ago
Good question. The options I have only seen in the past for the company to raise money are Private Placements, MS loans or money from the likes of Yorkville in exchange for shares which are diluting. Not sure if MS or GX BOD’s are likely to loan their own money or Belgians will step forward on a PP so it’s more likely we get more of the same: like diluting shares given to Yorkville or the equivalent. Instead of rewarding Yorkville on lousy terms, I propose rewarding NooCorp shareholders who purchased warrants prior to the GX merger disaster who bought warrants at a much higher price than today on the expectation that the GX merger would bring in $200,000,000 + and the share price would exceed $10+ after the merger. Instead, not only did the NB share price collapse because the GX merger brought little to no money to NioCorp but warrant holders share price has also declined though not as much.
The reason why the NB and NIOBW share prices have declined even more since the Railveyor CC is because of the announcement there will be a delay in EXIM financing approval due to EXIM now requiring additional drilling.
The only ones buying shares right now thankfully are those who believe NioCorp will raise the money to do the drilling, conduct more engineering and finance the revised FS.
But to push the share price higher, NioCorp needs to announce financing at a minimum to cover the cost of drilling which appears to be EXIMs only remaining contingency for loan approval. (Mgt has already stated a revised FS is not a pre condition for EXIM financing and addtl engineering has not been mentioned as an EXIM pre condition to financing approval).
My point is, unless NioCorp announces or plans to announce some non dilutive deal or less diluting deal with some entity to finance drilling, engineering or the revised FS, we’re likely to see more of the diluting Yorkville style financing. That being the case, why not extend an offer to existing NioCorp warrant holders who actually have skin in the game instead of Yorkville or the equivalent. The way to prevent warrant holders from dumping their shares would be to put a condition that warrant holders cannot sell their shares for say 30 or 60 days giving the share price enough time to recover on news that NioCorp raised money to cover drilling and the drilling commences.
[t][/t]
In either case, an announcement of short term financing to cover drilling costs will raise the share price which would likely benefit the share price for all shareholders regardless if the financing cones from Yorkville, a PP, a loan from EXIM or MS (unlikely), a revised exercise price for warrant holders or Yorkville.
Regarding replacing MS, sounds good in theory but that is unlikely to happen anytime soon and most likely won’t happen until NioCorp receives EXIM funding.
The more likely scenario is that MS retires or leaves the company after EXIM funding along with his 2,500,000 shares (25,000,000 pre split) plus whatever new stock options/warrants he’s received post split and Scott Honan takes over as CEO. Until EXIM financing occurs, I don’t predict MS is going anywhere.
Happy to entertain any addtl creative ways other folks have for how NioCorp can raise money for drilling, engineering and completing a revised FS because until we get an announcement on short term financing, I am concerned the share price will bounce around just under $2.00 until a PR gets recessed.
AlwaysOptimistic
19 hours ago
Addtl: the strike price would have to be lower than the current share price otherwise warrant holders would have no incentive to exercise their warrants and there should be a holding period of 30 days so the warrant shareholders don’t immediately sell those shares for a profit. This would be a quick way for NioCorp to raise funds for drilling, engineering work and to complete the revised FS. Again, the caveat should be proceeds can only fund the above objectives not company salaries, bonuses or stock options. With the news that NioCorp raised enough capital to fund drilling, engineering and a revised FS by raising money now through shareholders exercising warrants, the share price would appreciate.
AlwaysOptimistic
20 hours ago
Th, your idea is worth NioCorp considering. If the company was willing to amend the strike price from $10 to say $2, that would raise significant funds for the company to pay for the extras such as more drilling, additional engineering work and a revised feasibility study. From what my broker explained some time ago, the funds generated from exercising the warrants go directly to the company. If the company can raise money via a lower strike price in range of what the share price is today, it could conceivably raise the share price on news that NioCorp is back in the game with the funds they need to pay for more drilling, additional engineering work and a revised feasibility study.