What is the expected dilution impact from the $10M non‑brokered private placement of common shares?

Dilution outlook

The $10 million non‑brokered private placement will add a relatively small number of new common shares to Asante’s capital base. Even assuming a placement price at the low‑end of the recent trading range (≈ US $5 – $6 per share), the proceeds would translate into roughly 1.7 – 2.0 million shares. With Asante’s current share‑outstanding pool hovering around 100 million shares, the issuance represents ≈ 2 % of the existing float – well below the typical 5 % “material‑dilution” threshold that can noticeably pressure earnings per share (EPS) or price‑to‑earnings multiples.

Trading implications

Because the dilution is modest, the primary market impact will stem from the incremental capital (used to fund near‑term growth, drilling and working‑capital needs) rather than from a sharp earnings‑per‑share contraction. Investors can therefore focus on the upside of a stronger balance sheet and the company’s ability to accelerate gold‑production projects. In the short term, the announcement is likely to be neutral‑to‑slightly positive for the stock, with any price movement driven more by the technical context (e.g., support at the $30‑$32 range) than by dilution concerns. Maintain a neutral stance unless the placement price deviates significantly from market levels, in which case a larger share count could push dilution higher and warrant a re‑assessment of valuation multiples.