Re: Bangchak
in response to
by
posted on
Nov 12, 2020 03:33PM
On 17 July 2017 the following was published as part of a PR:
"Under the terms of the private placement, Lithium Americas has issued 50,000,000 common shares to Bangchak at a price of C$0.85 per common share for gross proceeds of C$42.5 million (US$33 million). Combined with the 20,300,000 common shares previously owned, Bangchak holds 70,300,000 common shares of the Company or approximately 16.4% of the Company’s issued and outstanding common shares"
On 8 November 2017 LAC underwent a 1:5 Reverse Split:
I am trying to take those 2 facts and weave them into the current situation where Bangchak has sold so many of its shares recently in a market of around $10 a share to the $9 a share (USD) range. Since they obtained the 50 Million shares prior to the Reverse Split it would seem that whatever Bangchak is selling now that it is making quite a bit of profit off those 50 Million shares.... and I haven't even taken into consideration the effect of the USD to Canadian Dollar factor, which would increase the profit even more. 85 cents a share Canadian might have been something like 65 cents USD back in 2017, just a rough estimation.
If I use 70 cents a share USD as a generous approximation for the 2017 figure, prior to the RS, then Bangchak is way over 10X on their original investment by selling whatever amount of shares it has in Lithium Americas now. I acknowledge, as I have previously, that they aren't selling the whole ballof wax. It was something like 1 %. I don't know what it is up to today out of their total LAC holding, but it appears that whatever LAC stock they are selling that they are certainly taking a big profit on those shares, unless somehow the 1:5 RS is factoring into this original deal back in 2017. Since the PR announcing the 50,000,000 LAC shares comes from July and the RS wasn't in effect until November I just don't know what if any effect the RS had on the transaction.
This is all higher math to me, guys. Any help in sorting this out would be appreciated. Okiedo