Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:.20

[alberto782007]

I had I think 825k shares and sold a little more than 20% as fast as I could when the rights details were announced, in the low 30's.  I exercised all the rights that came with the remaining shares plus I bought 50000 more rights a few days ago and excercised them, too.  So now I have just under a million shares with an additional contribution of about $5000 cash for the extra rights I bought.  So in the end, if I exercise the warrants I will end up with about 1.34 mill shares with an outlay of $83000.

If I hadn't sold any shares and exercised 825k rights I could have avoided dilution and ultimately ended up with 1.65 mill shares with an injection of $173000 cash.  But it would have required half that amount now which I wasn't able to finance.  As it is, If I do the warrants my dilution will be about 20%.  I hope to be able to come up with another $78K in 6 months to excercise the warrants if it is worthwhile.  By doing what I did I minimized dilution to the extent I could with another $5k thrown in, which is all I want to spend right now.

My shares are spread over 6 accounts including rrsps and tfsas (belonging to me and my wife)- to which contributing more cash now would have not been possible as this year's contribution maximums were already reached.  So unless there is some way to transfer rights into non-registered accounts I was thus constrained for a portion of my shares.  I didn't enquire, actually.  Maybe I will for future reference.

I agree with mill. What keeps me up at night is the question of what it will take to make people buy this stock, in the next 6 months and keep the price well above 21 cents.