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NioCorp Developments Ltd. Message Board

  • henry_jiricek henry_jiricek Oct 25, 2013 1:29 PM Flag

    First round of financing=tot exactly encouraging news, to say the least

    NIOBF recently announced that the 'first tranche' of 6,189,612 shares per the planned overall sale and thus massive dilution overall of 66 mil shares, was completed.

    The obvious problem: it was hardly well subscribed by 'outside' investors. 3.9 mil shares were purchased collectively by the CEO and the Pres., thus about 2/3 'insider purchases' to reach the 6 mil+ shares bought at a whopping $.15.

    So, what we shall presumably have is: huge share dilution in order to garner a scant $10 mil for the company coffers--that sum contrasted to the stated many $ billions worth of NB at Elk Creek--then the consequent forthcoming MUCH, MUCH, MUCH greater share dilution in order to somehow finance the $400-500 mil said to be necessary to build the mine.

    Thus, it's hard to ignore the all but certain likelihood that small, individual shareholders who have held shares for a lengthy period of time will be financially shafted. Whereas, as is invariably the case, the 'big' company insiders make 'arrangements' so that (only) they come out possible winners.

    And 'outside' shareholders should be surprised at this point?

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