What is the intended use of the over $1 million added to FMST's treasury and how will it impact the company’s liquidity and runway?

Intended Use & Liquidity Impact

The $1 million‑plus infusion comes from the issuance of shares to Den Mines under the Investor Rights Agreement, and FMST has explicitly said the proceeds will be used to shore up working capital, fund ongoing R&D and pilot‑scale clean‑energy projects, and extend the company’s cash runway through the next 12‑18 months. By converting a portion of its convertible notes into equity, FMST reduces debt‑service obligations and improves its balance‑sheet flexibility, which translates into a higher cash‑to‑burn‑rate ratio. In practical terms, the added cash lifts the company’s liquidity profile from a modest “near‑term financing risk” zone to a more comfortable “sustained operations” tier, providing a buffer against potential delays in project financing or regulatory approval.

Trading Implications

From a technical standpoint, the news is likely to generate a short‑term price bump as the market prices in reduced financing risk; FMST has already shown a modest uptrend (≈ 2 %–3 % gain) on the day of the announcement with volume above its 10‑day average. For risk‑adjusted traders, the key metric to watch is the cash‑burn multiple (cash on hand divided by monthly cash outflow). If the runway now comfortably exceeds 12 months, the stock may attract longer‑term speculative capital looking for exposure to the clean‑energy transition, potentially pushing the price toward the upper band of its recent range (≈ $0.30–$0.35). Conversely, any subsequent news of project setbacks could quickly erode that premium. A prudent entry strategy would be a small‑to‑moderate position on pull‑backs to the 20‑day EMA, with a stop just below the recent low to protect against a re‑rating of the financing risk.