GREY:PGDIF - Post by User
Comment by
mill44on May 12, 2016 4:30pm
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Post# 24867713
RE:RE:It would be nice
RE:RE:It would be niceI agree with you that cost and the way they intend to get the money to move forward are the main reasons holding the price back.
For a rights financing I will point a couple of things out. It has to be done at a discount. The only ones guaranteed to participate are the Friedlands, so why not do it at a deep discount again? The market fears it and I expect it if they issue more rights. The next steps require a lot of money, so what would they achieve with 5-10M, beside diluting the shares to oblivion, as Cudjo says? The PEA gives them what they need to shop for partners or sell it. The prudent and right thing for ALL shareholders would be to wait until someone expresses interest. They could use the remaining money to work on the rest of the kims, just to show the potential beyond the PEA numbers, but no more major work.
Of course, this is where the very strong insider ownership might kick in. They might decide on the course of action based on what they want and not what would be good for everyone.