Forum Topics NVA NVA Nova Minerals Ltd General Discussion
knowlesy
Added 6 years ago

G'Day traders,

 

Has anyone got any news on this hult? its saying for an anouncement on Friday 27 November 2020, but havent cought any news that could of been stated for a potential hult.

Maybe another lager buy in? 

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Bear77
Added 6 years ago

https://www.afr.com/street-talk/nova-minerals-taps-evolution-capital-for-placement-20201123-p56gyj In case you haven't got access to the AFR site, here's a snippet: Nova Minerals taps Evolution Capital for placement by Sarah Thompson, Anthony Macdonald and Tim Boyd, Nov 23, 2020 – 9.05am ASX-listed gold and lithium explorer Nova Minerals has kicked off the week with a capital raising to finance drilling at its resources projects. The company had Evolution Capital Advisors in the market on Monday morning, in its bid to snare up to $20 million in fresh equity. The new shares were being offered to potential investors at 17¢ each, which represented a 24 per cent discount to Nova's last close and a 10 per cent discount to its ten-day VWAP, according to terms sent to funds. The term sheet said money raised would go towards resource development drilling programs, technical field programs and JORC studies, among other things. Nova has a portfolio of mineral exploration projects in the US, Canada and Australia, and its main two projects are the Alaska-based Estelle gold project, and Canadian Snow Lakes resources lithium project. Bids into the placement were due by 5pm on Monday. --- end of snippet --- Looks like a placement to fund ongoing costs, including further drilling and studies @knowlesy. Actually, if you look at the second page of their ASX announcement this morning - being the page they sent to the ASX requesting the trading halt, they clearly said: Nova Mineral Limited (ASX: NVA) (“Nova” or the “Company”) hereby requests a trading halt in respect of its fully paid ordinary shares (ASX: NVA) pursuant to ASX Listing Rule 17.1. a) The trading halt is necessary as NVA expects to make an announcement to the ASX in connection with a capital raising by way of a share placement;

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Bear77
Added 6 years ago

Short answer Knowlesy is you can't. It's a placement, so it's invitation only, and it's being organised by Evolution Capital Advisers - here's their website: https://www.eveq.com/ If you qualify as a Soph (sophisticated investor), meaning you had a gross annual income of $250,000 or more in each of the previous two years or have net assets of at least $2.5 million, as prescribed by the Corporations Regulations 2001 (reg 6D.2.03 and reg 7.1.28), and can get a letter from your accountant to confirm that, then you can probably register with Evolution Capital and they can then offer you shares in this and/or other similar placements. That's if they haven't already placed all of the shares for this raising. Being a shareholder makes no difference when it's a placement - it doesn't get you any further towards the front of the line. We have discussed the pros and cons of placements vs SPPs and Rights Offers here on Strawman.com in recent weeks. SPPs (Share Purchase Plans) and Rights/Entitlement Issues are always fairer because every shareholder has the opportunity to participate, well - if they live in Australia or in another suitable location they do - some countries are often excluded, such as the USA, because they have a much higher burden of disclosure requirements that are way beyond what the ASX require when issuing new shares. The advantage of placements are they are cheaper and quicker for the company that is raising the cash, and so are often favoured by smaller companies who need cash quickly to take advantage of an elevated share price, or who can't afford the fees associated with extending an SPP or a Rights/Entitlement Offer to every one of their eligible shareholders. One of the reasons why placements are so much cheaper is that Soph's and Insto's (financial institutions such as banks, super funds, asset managers, fund managers, etc.) are expected to have a much better understanding of risk, so the usual hundreds-of-pages-long Prospectus-type documents are NOT required for placements. There is very little in the way of disclosure required by the company raising the capital via a placement. It's very much buyer-be-aware (and beware). The onus is on the Soph's and the Insto's to do their own DD (due diligence), rather than on the company raising the money to explain every risk and possible eventuality - as they tend to have to do when dealing with ordinary retail investors. If you've tried reading ALL of the way through a prospectus, you will know what I mean. Most people don't bother, because there is just too much there to take in. And that all costs money to put together, and has to be signed off on by the ASX (and ASIC also in some cases). Being able to skip a prospectus is a very powerful incentive for companies to go down the "placement" road instead. There are also other cost savings of course, such as not having to post stuff out to every shareholder, and organise a payment acceptance facility for every shareholder. With a placement, the company pays a fee to the placement organiser (Evolution Capital in this case) and the placement organiser takes care of everything else, and they get their cash within a couple of days. It's far cheaper and quicker, and that's why small companies often do it. It's not fair of course to the shareholders who miss out and get dilluted, but that's the way it goes. Hope that helps.

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