GREY:GYPHQ - Post by User
Comment by
red911on Nov 23, 2011 10:44am
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Post# 19261218
RE: Debentures?
RE: Debentures?You give GGN $1000 and they promise to pay you 10% per year (payable quarterly) and they give you 750 warrants with an exercise price of
.40. They are doing this 4,479 times for a total of $4.47M. Total dilution will be just 3.36M shares. It's already closed so that's a good thing, it was completed by the same Acumen-Roth tag team so that's a good thing, and the terms are somewhat more favorable to GGN the just 4 months ago so that's a good thing. IMO the only thing we don't know is why they choose to do this now as it was unexpected. Could be many reasons... most would be favorable... expanded drill program, acquisition, partnership, etc.... the only bad reason I can think of is production problems... although even this 'bad' reason could prove a positive if the money will be used for upgrades that will pay off in the long run. No idea.
red911