OTCPK:CFMSF - Post by User
Comment by
tooclassyon Mar 12, 2012 10:21pm
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Post# 19660483
RE: 22 Million coming from ??
RE: 22 Million coming from ?? Alex,
Why in the world would Clifton issue shares at depressed prices immediately after trading again when it can wait closer to December? The company has various options, including changing its mind about taking the Osisko loan. The loan details say that "Clifton, at its sole option, may elect to convert the entire amount of principal of the Loan into common shares of Clifton at a conversion price per share equal to $3.12". Therefore, if the market price of Clifton is below $3.12 as they get within a few months of December, the company will be at least tempted to take the loan since conversion shares will be deemed to be worth $3.12. Then again, if the market price is substantially higher than $3.12, the company will be better off issuing shares in a private placement. Let's say, for example, the placement shares are $4.00 each. That would require some 6 million shares to be issued. At $5.00 just 5 million shares. This would be managable dilution for a company whose share count is quite small (36 million). Or perhaps the company will take some different route. But the point is that the company has options and it has time.
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