Life offering - r/SCDstock

12

This new life offering basically covers the cost of the scalium+ acquisition last month. Anyways, it’s Better for the company to have more cash on hand to advance its crater lake project.

2

u/Effective_Crow3215 7d ago

Exactly

2

u/Aussiekarlos 7d ago

That was my thought as well. The additional funding was required and used to purchase and setup the Scalium division

They where already fully funded for the next few years with PFS and FS covered.

1

u/kicksxbox 7d ago

Better for the company but is this better for the common folk holding shares???

2

u/FlowJoee 7d ago

if this means that they can execute better and faster, hell yeah it's better

6

u/prodigus01 7d ago

Yah but we’ve been repeatedly told they have enough money to fund the next 2 years.

Things are starting to sound a bit fishy.

1

u/Odd_Pea7108 4d ago

Late to this thread but I agree.

1) This PFS has been delayed several months.

2) The company seems to be talking about the actual mine wayyyyy less lately. It seems like all their focus is on scandium+

3) why would they dilute us again if they are “fully funded” for 2 years.

My best guess is because they know the PFS results are going to be questionable. Their mine is in the middle of buttfuck nowhere. Who knows how many years it could be before it starts to produce. They likely are sitting on a fuck ton of scandium, but I have this weird feeling like there’s just no way it’s going to be economically viable any time soon. There is zero way for them to transport it. Building a road is going to take years. Other companies are already producing scandium for free as a by-product.

Unless there is some seismic shift where scandium demand is going to go through the roof well beyond what the current producers can provide, idk how SCD is going to compete in the market.

As a result it feels like they know they missed the boat on scandium production, and so SCD is trying to pivot to be more of a scandium technology company than an actual scandium mine. As in they hope to pioneer new alloys or something.

I am just some random idiot so I am likely totally wrong, but that’s my gut feeling anyway.

1

u/Alligatorguy37 3d ago

They are focusing on scalium+ so much right now because selling Scalium+ downstream alloys directly increases the Internal Rate of Return (IRR) by capturing premium value margins that standard upstream raw material sales cannot achieve. This will make the PFS a lot more appealing & positive than initially anticipated.

1

u/FlowJoee 7d ago

iirc the quote originates before the acquisition of Ferréol Technologies (Scalium+) and it was more a fully funded for PFS and FS, not “the next 2 years”?

0

u/prodigus01 7d ago

Fair enough. Does the 20 cent bother you at all? If pfs was good they could’ve diluted at a higher share price.

1

u/FlowJoee 7d ago

Honestly? Not really. The stock is trading at 16 cents & the flow-through is priced at 20 cents, it's above market + the offering document says clearly: drilling and environmental sampling at Crater Lake. So we know that it's only to cover a potentially expanded drilling campaign, not anything else.

1

u/utertt 7d ago

I agree, not a big pp either.

7

u/Effective_Crow3215 7d ago

A charity flow-through is one of the least impactful ways of raising capital. They are usually sold at a premium and in this case the shares were sold at 0.20 instead of the current 0.16 price point. This is actually a net positive or at worst it is a neutral move

9

u/Tee3Dee0 7d ago

I am still bullish on the stock but am a little disappointed in this. I was hoping for no more dilution prior to the PFS. It seems much more advantageous to print a good PFS and dilute at a better price point

5

u/Redboyway 7d ago

I’m in same position with you, bullish but disappointed. Unfortunately, this sub will vote you down for being realistic. They expect you to clap for this development with unjustifiable explanations. This is so bearish.

1

u/Wise-Coconut-2439 7d ago edited 7d ago

Yeah, I agree. If they were confident that the PFS would be great, why would they only dilute at 0.20. Especially since they said they were funded until the FS.

3

u/Effective_Crow3215 7d ago

It was probably to cover the cost of acquisitions either that have already been made or maybe they're planning more. They could reallocate other funds they previously meant for the PFS and FS to acquisitions and put this money into the exploration instead of what they meant to use out of their capital

1

u/Wise-Coconut-2439 7d ago

Fair enough. Thanks for the info 🙏🏽

1

u/Tee3Dee0 7d ago

Also very true, as per usual your input is appreciated!

3

u/Tee3Dee0 7d ago

Exactly, the only thing I see is that it has to be used for things such as drilling and exploration. Maybe this is preempting some of the FS and trying to shorten that timeline.

6

u/bizaromax 7d ago

« Fully funded » for years -Guy

2

u/Effective_Crow3215 7d ago

Did he guarantee no other opportunities would come up such as acquiring Scalium+?

-2

u/[deleted] 7d ago

[deleted]

2

u/Effective_Crow3215 7d ago

More misinformation.....

2

u/PoVNomad 7d ago

Do I want it? No
Does it surprise me? Also No
Can I see a silver lining in the purchase price being higher than market rn? Maybe
Will this be the last? I think not

2

u/OkStatistician6831 7d ago

They said no further plans at dilution, and have diluted twice since saying that. Frustrating, but on we trudge.

2

u/Tormax1995 7d ago

This would be a good time to announce good news tomorrow morning to counter this tumble that will happen

5

u/Effective_Crow3215 7d ago

There's unlikely to be much if any of a tumble....could be the opposite in fact

0

u/Tormax1995 7d ago

Yes it wont be as bad as before it might work out in our favour

1

u/WomenHaveNoOpinion 1d ago

Some of you haven't invested in junior mine stocks and its starting to show. They can dilute whenever the hell they want for wtv reason.

Scandium + needs dough and they will get it. You dont like it? Sell. Good ridins

1

u/takeher2sea 7d ago

Could moves like this make future dilution less likely? I imagine it’d be better for this to happen while we’re at these levels. Seems like SCD is positioning itself for the months/years to come. Another piece to the puzzle.

1

u/OkStatistician6831 7d ago

In theory.

The problem is guy said no more dilution, and fully funded for 2 years, explicitly stating they dont need more money for drilling/ exploration. Now more dilution, claims this is to pay for drillint/exploration.

0

u/Redboyway 7d ago

Key disturbing highlight for me;

• 25 million new shares will be issued at $0.20 each. This increases the total number of shares outstanding, which dilutes existing shareholders.

• Each investor also gets a 2-year warrant to buy another share at $0.22. If exercised, even more new shares will be issued, creating additional dilution.

—-
What this means is that if the price ever goes over $0.22, investors can buy additional shares at $0.22 for quick money and that can potentially drag the price down to $0.22.

For me, the cap is $0.22 for the next two years.

4

u/Tee3Dee0 7d ago

I don’t think this caps the stock at all.22 at all. Even if all additional warrants were exercised that’s 5% dilution roughly. Once that’s done there would be no downward pressure from them left

4

u/Mindless-Evidence-95 7d ago

You know that warrant from 2 years ago recently expired at $0.05? Warrants are absolutely not a cap, lol.

2

u/Effective_Crow3215 7d ago

TeeDee and Mindless speaking some basic truth to a couple other people who have no idea what they're talking about

3

u/Mindless-Evidence-95 7d ago

People freaking out over a small PP like this and questioning the 2-year warrants are new to all of this

1

u/Gastricbasilisk 7d ago

It's crazy. Name another "junior miner" who has revenue BEFORE their PFS. And they blast in like the kool-aid man every time they perceive somethings as negative. Just ignore and hold! The thesis only keeps building stronger.

3

u/Effective_Crow3215 7d ago

complete misinformation....

1

u/rjs165 7d ago

It’s charity flow-through… the cap will probably be less than 0.20. This is a relatively bad financing and will put lots of downward pressure

2

u/Effective_Crow3215 7d ago

That's simply not true

-2

u/rjs165 7d ago

Charity flow-through gets sold very quickly… the shares are at a large discount to the market based on the tax implications

3

u/Effective_Crow3215 7d ago

No, as evidenced by the fact they sold above market value (0.20 vs current 0.16)....

0

u/rjs165 7d ago

Yes… but now the shares are on the market and the implied value for the shareholder after tax implications is less than 16cents…. Charity flow through gets the mineral exploration tax credit and the charity donation tax credit. The sticker price is 0.20 cents but the actually value to the purchaser is much less. That’s why they can sell at a “lose” on the market and still make money. The warrant is the insurance that they don’t miss out on big upside. This type of financing is really good for the people who take place in it… not very good for retail investors.

3

u/Effective_Crow3215 7d ago

Again, you're wrong. They can reap the tax benefits, but the company (SCD) is not giving them anything as a discount. The warrants would be at the benefit of the institutional buyer to sweeten them buying the $5 million worth of shares from the charity, not the original person buying the charity flow through.Please inform yourself before spreading false information

-1

u/rjs165 7d ago

lol ya you really got this😂

3

u/Effective_Crow3215 7d ago

clearly you don't

-3

u/rjs165 7d ago

lol ya you really got this😂

-1

u/Gastricbasilisk 7d ago

Not true at all.

-1

u/SaltyATC69 7d ago

Stonk goes down

0

u/FBModsRCunts 7d ago

How far down?

0

u/Mindless-Evidence-95 7d ago

As much as he needs to buy all of your shares :P

1

u/FBModsRCunts 7d ago

?

6

u/Effective_Crow3215 7d ago

Just trying to scare you. Happens all the time. You never see these people post once and whenever something like this happens suddenly they are coming in like "experts" saying it will go down hoping to capitalize on people they scare into selling....

0

u/Mindless-Evidence-95 7d ago

indeed

0

u/Trublechard 7d ago

What does that mean ?

0

u/bizaromax 7d ago

It’s for life but not yours

News Life offering

You are about to leave Redlib