$400 Million in financing. Looks like MCP will survive. Stock Exchange was wrong. This stock has most likely bottomed now and will begin trending upward over the next several months. With millions upon millions of shares sold short the upward move should prove interesting as the price begins moving back up. Cheers!
Not sure about the trending upward over the next several months, while the financing is good news for the short to medium term, the latest Q result appear disastrous once again, the cash burn is not much better than Q1 and the lease back of the equipment will not help the cost and cash flow for Mountain Pass in future quarters.
Ultimately this buys MCP more time to ramp up, lower costs and optimsie and for REO prices to go up, but their future is still largely dependent the direction of the prices of REOs going forward, which have still not bottomed.
Wow, girls....a 26 PENNIES "short squeeze" In the AH, that is a pathetic joke coming from a penny stink stock that CRASHED more than 80 DOLLARS from its all time high!! That will strike terror in the hearts of far smarter rare earth SHORTS...........NOT!!!!!!!!!!!!!! ROFLMAO
I agree with everything you said in the body of your post. The outlook is good and shorts should get out and let the dust settle. And if they don't, well, they're fools. And no BK in sight.
However, that $400 million, while welcome ($250 million now, $150 later if, etc...) comes with warrants and they haven't said what the warrant price is or other terms. So that's where the potential dilution is.
It is good and bad. The price of the warrants is where The stock trades at the day the financings are closed. Won't they try to hold down the price until the financing is completed. After that they will try to get as high as possible.