Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:RE:RE:RE:RE:Short Positions for PGD

[ekim]

TSX rules that came in last fall or the fall below allow for a 4 rights for 1 share offering (25 dilution basically) with basically no questions asked.
Above that and they have to go through special hoops..get permission from the all the securities exchanges, etc. , etc.

The system has been set up for quick and easy discounted rights offerrings within limits.
It is these limits that I talk of.

They also can't do a standby agreement as that they are in the 19.9% plus owners. That is one reason why Ned was brought into the standby agreement last time...as they had flexibility to re-arrange who stoodby with who.

So....Robert and Eric can fully exercise their rights issued to them without question.

The 20% plus option limits them in what they can do in a discounted rights offering and also personal private placements.

So, they are really done squeezing as much ownership % out of the company as legally possible without tripping sort of announcement to buy the whole company.

That is also why I bring up the friend(s) of friedland's permutation as that would sort of give Robert/Eric more control of the company then they do now indirectly with a personal contact.

You will recall the 10 cent right offering was a 4:1 split and it was after the new rules were in place..so it was dead easy for them to just say...yes...lets do it. The 21 cent rights offering and warrants and standby was not dead easy and took time legal eagles to work through the system. You remember we didn't know the 21 strike price for quite a period of time. I believe we found out the 10 cent strike price a lot quicker.

LONG...PGD

EKIM