RE:RE:Financing and Dilution ComingFor people who think that the opportunity of cheap shares is nice, here are some numbers to think about.
If you were lucky to invest 1000$ at 40c in 2014 (the cheapest before financing), you would have had 2500 shares at financing.
Option1: do nothing, today you would be down 22c, or 55%, loss 550$ .
Option 2: use your rights only. 3750 shares at an average of 34c, down 44%, loss 562$.
Option 3: use your warrants too. 5000 shares, average .305c, down 39%, loss 600$.
Option 4: rights at 10c, 6250 shares, average 26c, down 27%, loss 438$.
So after 2 years of holding and increasing your investment by 62%, or 625$, you would be losing 112$ less.
Even a 25% discount (probably the minimum) from here would take us to 14c. A 2 to 1 offering would get them about 24 million if successful and would cost you another 437$. Assuming an SP of 14c, you would have 9375 shares worth 1312.5$ and your loss would be 750$.
It was said that rights offering is the fairest financing for shareholders. So after doubling down on your investment and waiting for years , you would need a 50% gain to break even. Every long's dream, I guess.
When they say fair, they do so because it is considered that you can sell your rights if you don't want to participate and that would cover the dilution. PGD had no real market for rights the last 2 times. That took care of being fair to all shareholders. But even with a complete write down of rights, doing nothing would have been smarter than participating.
As you can see, the BOD could not create any value for buy and hold investors, the ones who want to see the project completed, like Ekim says he is. Nothing until now. Will it change with a new rights offering? Over half a million shares, the need for 4-500M if you go with the lowest numbers and a few more years of waiting. So no way a rights offering would be in the interest of all shareholders, just like the last one has not been.