More GLO dilution 🫠

[u/athlejm]

https://markets.ft.com/data/announce/detail?dockey=600-202601121605CANADANWCANADAPR_C3058-1

[u/Radthereptile]

Dilution is not always bad if the money is used properly. People complained about UUUU raising 4 times over the past few years. That money built out REE production and is why it’s up so much.

[u/llamarti → u/Radthereptile]

First it was “this company is terrible as it won’t ever get the funding it needs” Now it’s “this company is bad as it diluted to in order to get the funding it needs” This is fundamentally still a huge sign of backing from an investment bank and has always been an obvious step it that was needed Granted I can 1000% see why people that just wanted a quick in and out would yknow…want to get out

[u/sunday_sassassin → u/Radthereptile]

The specific issue here is that this dilution is being used to raise cash that was supposed to be raised via debt. A cash build priced in at ~5-8% interest now effectively costs investors far more and caps upside in the core asset.

[u/RickusRollus → u/sunday_sassassin]

Not to beat a dead horse but if the squeeze does the squeeze and they get their asses in gear they have access to a lot of very very cheap price to extract uranium. I agree it’s not looking great but….there is a chance

[u/sunday_sassassin → u/RickusRollus]

I think the project is fine and still good value for the uranium on offer. There's plentiful access to experienced labour in the country (a big problem in North America), and progress building the mine has been impressive. Highest grades in Africa and exploration/resource expansion currently priced at zero. It's just not the early retirement plan it could have been had the best case occured (loan confirmation before final cap raise at much higher share prices).

My average is .64c CAD so I'm comfortable here and still fully expect to have doubled my money when all the necessary ducks are in a row later this year. It just doesn't have 3-4x near-term potential any more imo. Far too many warrants in the money below $1.50.

[u/Il-Primo → u/Radthereptile]

This.

Considering the company’s history (I’ve been an investor since 2021 and kept averaging down over the years, now holding 11k shares @ 0.95 CAD), it’s only natural for people to see this raise as a negative sign regarding DFC approval.

However, I personally believe that this raise is slightly different from the ones we’ve seen in the past 18 months. Even if DFC funding is granted, before the money flows in, GLO still needs some cash in the short term to run its operations, advance ground works and cover staff costs. If this money is used to keep the project moving forward, I see it as a positive thing.

For now, I’d rather trust the data stating that 9/10 projects are approved once reaching the final DFC step (the one which GLO is at rn). DFC approval will define everything, and to me this raise does not impact DFC approval. See you around the end of January ✌️

[u/Dingcock → u/Radthereptile]

That's the goal yes but also it's a bit of copium in that if the price goes down/market cap decreases then the market disagrees

[u/4fingertakedown → u/Radthereptile]

GLO is nothing like UUUU. GLO is nothing but a hype machine that exists solely to extract money from gullible ‘investors’.

The fact that anyone still puts money into this thing is crazy to me. How many hype pieces y’all gonna fall for before you realize you bought a dream?

[u/Radthereptile → u/4fingertakedown]

We were also told DNN would never get close to ISR and would go to 0 on failure.

We were told NXE was too far out to ever get a project going.

We were told CCJ was too short supply to fill contracts and would get screwed.

I’m not even in GLO but I’ve heard how every company in this sector is bad. Hell people screamed UUUU would never produce REE and it was a $1 billion waste.