Flash Note: June 20th
Global Atomic, Somair Nationalization, Peninsula Contracts & Boss Guidance Hit
Apologies for this note getting out so late. A nasty storm came through the Mid-Atlantic US and knocked out internet and mobile coverage so I hit the road to find some Wi-Fi.
Global Atomic Announces C$30M Private Placement
Global Atomic ($GLO.V) announced a C$30M private placement issuing 37.5M units at C$0.80/share. Each unit consists of one common share and one common warrant with a strike price of C$1.00/share for up to 36 months following the issue date.
CEO Stephen Roman commented, “Today’s offering will support continued development work at DASA. We have mitigated the size of this offering by slowing our capital spending, which will continue until we have secured our primary funding commitments. We continue to work on several financing solutions and remain very upbeat about securing a financial commitment soon. We are actively working with the U.S. development bank on final preparations for their presentation to their credit committee. Simultaneously we have reached [an] agreement with a JV partner on the major terms of an agreement for them to take a minority interest at the project level. The Company also continues to assess non-equity interim financing options.”
Where do we even begin?
One of the first rules commodity operators learn in the business is to never put yourself in a corner. Once in a corner, you will always need to pay (usually a lot) to get out of it.