GREY:GTMIF - Post by User
Post by
natureboy16on Aug 06, 2010 9:31pm
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Post# 17329906
15% over allotment
15% over allotmentPart of the PP was an over allotment option to the dealers. They could take up an extra 15% of units issued. This works out to just over 1 million units.
When I read that I was a bit concerned this morning that we would have a high volume day. IE. the dealers would take up a lot of it and sell. It all comes down to what they think the warrants will be worth. The cost of the units to them is about 30 cents after commission. So selling to this level or even a tad below really does not cost them anything, and they get to keep the warrants.
I would do it if I were them.
Everyone it seems is thinking that something bad has occured. I see a company that has not really changed. The moratorium news came out while they were working on the deal. Other than that, nothing has changed. I think they wanted the money for specific NY land and science. Also they thought they could get production going in NY from the Oneida SS. I don't think they realized how the dealers were willing to eat their young - definitely lacking in experience.
Also, they did not manage the OSLO listing properly. I think they can do it in the winter no problem. As I said before, it will only take 2 or 3 wells in the Lowlands to hit good, and all players will go up a lot, whether it was their well or not.
A disheartening day, but I don't think it is bad at all on the corporate front. If I didn't have as much exposure as I already do, I would have bought more today. I already have two 18 wheelers filled to the rim - that's enough for now.
JMHO
nb