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NTVO

-15.38%
VERY BAD

Nativo Resources Announces Heavily Discounted Equity Raise

Why we think this is very bad

The key details of this equity raise are highly concerning, with the company issuing new securities at a massive discount of over 98% to the previous closing price. This is a clear sign of low demand for the company's shares and could be a last resort funding measure. The significant dilution from the options and warrants is also likely to be detrimental to existing shareholders. Overall, this news indicates significant underlying issues with Nativo Resources' financial and operational performance.

Key Points

  • Nativo Resources plc announces issue of 5,544,118 share options and 1,230,120 warrants to executive directors
  • Options and warrants issued at a 98.87% and 98.98% discount to the previous closing share price of £0.4250
  • Significant dilution from new securities likely to impact existing shareholders
  • Heavily discounted raise indicates low investor appetite and potential financial distress

Summary

The mining company has announced a heavily discounted equity raise, issuing new securities at over 98% below the previous share price. This is a concerning sign of low investor appetite and potential financial distress.

Nativo Resources plc (LON:NTVO) has announced the issue of 5,544,118 share options and 1,230,120 warrants to its executive directors. The options and warrants are being issued at a significant discount of 98.87% and 98.98% respectively to the previous closing share price of £0.4250. This heavily discounted equity raise is a clear sign of low demand for the company's shares and could indicate underlying financial or operational issues. The dilution from the new securities is also likely to be detrimental to existing shareholders.

Key Dates

16 June 2025
Issue of share options and warrants to executive directors
PLACING