Kenmare Resources - Re: KMR Stream Log - Paladin, allow me to clarify....

Paladin, allow me to clarify. The company is raising $175m. That translates to £117m. If the company went to the market today at.55p they would need to issue 21.2 billion new shares. That is 7.6 times more than the 2.8 billion shares currently in issue. For each of us to maintain the value of our holdings we would need to buy 7.6 shares for each share we currently own. This means investing £4.18 for each share we own JUST TO STANDSTILL. If we dont or cant invest this money the VALUE of our shares is reduced by a factor of 7.6 Taking today's price the VALUE of each of our shares (post the capital raise) is .072p. If they increase the issue price by, say, 4 times .55p then we have to buy 1.9 shares (7.6 divided by 4) for each share held today BUT we pay four times more. The end result does not change. In this whole scenario, the true value of shares today is sadly .072p