Here is what I am looking at:
4 major players involved - all specialists in this industry segment.
Lead Fund has 9.2% of stock but - must have a coalition with other funds in order to control.
Upside for major players
If I am one of the other funds - what is in it for me to massively dillute the share price? $$$ - how much money will Noront be worth? Could be Billions, could screw alot of people over a plot of worthless dirt in Northern Onterio that never gets developed into anything.
Downside for major players
No one in the future wants to own a position in any Junior Mining Company I am involved with - I am seen as a plague. Result - when I take a major position in a company, retail investors know the way I operate and the shareprice goes down as retail runs away. So going forward - I lose money because my presence will drive money away. We will call this the Anti-Buffet effect.
Logic Gap for the Fleecing - what I haven't understood from the beginning?
I truly believe that Rossue thought that he would be embraced by shareholders as their savior. That Richard was a problem - with his over promising, budgeting problems, the deals he was making in the RoF and other projects he was engaged in around the globe. There was no need for him to go to the lengths he did to get votes from retail. Simply wait till the last possible moment - vote your 40% and win the day. A 4 year old could put that stratedy together.
Spotlight
They are in the spotlight now - they can fleece us this one time, with this once company... and in doing so they destroy their credibility in the marketplace forever...
So I think they will put a little bit more butter on the bread they eat but in terms of a total hosing... I don't think that is what they are after. They want to get the shareprice up as much as they can so they can get a major involved at a good price level so they can stop having to manage this company, and go home.
Time Horizon
Their time horizon as I see it will be for 1 year. They have enought money $29MM to run the company for that period of time without having to get more. They will do everything they can to maximize share price immediately probably have their funds buy shares off the open market to get the price up and then cut a deal w/ a major...
One Sparkle of Hope
These funds will be far more effective at marketing our company to institutional investors. Which could also bring to the table what they take from it...
Am I scared - YES!
