GREY:PGDIF - Post by User
Post by
Kidlapikon Aug 21, 2014 2:06pm
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Post# 22866014
Rights Offering
Rights OfferingI believe it is going to be a 5 rights for 1 share rights offering for a 20% dilution or roughly 28 million new shares with potential for 28 million more on warrants
I was thinking 0.35 per share on the rights offering new shares which would come to only $10-mil raised initially with warrants exercisable at 0.45-50 for another $12-14mil.
Though to get through the bulk sample they said they needed around $13mil and wanted the warrants to cover the cost of completing pre-feasability study.
That could be a 25% dilution at 4 rights per 1 share and at 0.35 a share would equate to 36-million new shares on rights and 36-million more on warrants if the 1 warrant per new share holds up and isnt turned into half warrants.
36 million new shares at 0.35 raises $12.6mil with another $16.2-18mil at 0.45-0.50 warrants.
If you entertain warrants at 0.25 your looking at needing at least 48-mil new shares to cover $12-mil bulk sample program which is roughly 33% dilution and would need 3 rights per share exchange. With another 48-mil shares in warrants if they maintain the 1-for-1 as stated.