Peregrine Diamonds Ltd. PGDIF

Massive share issue?

[oiltar]

Sounds like Will is casting doubt on a financing.

"Unfortunately, the cash needed to pay for the drilling and the studying is also very much conceptual in nature. Peregrine says it is "in discussions with various parties" regarding financing the program, adding that it is "confident such financing will be obtained." Investors appear equally confident, although many retail shareholders are apprehensive that the financing obtained will be another rights offering at a hefty discount to the current stock price."

But lets say it goes threw (we don't want to see what happens if it don't but if it did not then BK) and the management cleans out the little treasury severence pay we still will need at least $10 million for exploration and G&A.

So lets sat PGD breaks with tradition and for once does the issue at the market price we get at least 50 million more shares.On the other hand if they follow regular issues and do it at 10 cents we get 100 million more shares taking the float to 450 million.

So any way I see it more tonnage of paper before more tonnage of ore.If not then PGD ends up in the grave yard of JR flame outs.I have had at least a dozen flame outs with near and some times 100% capital losses.

This situation is now very much at risk.But the only thing is RF and EF go down with us.Until we see the financing PGD is un-investible from a financial stand point.But from a gelogic stand point its the real deal.I VERY MUCH HOPE a major buys out PGD befor the till runs out or we issue a billion shares to keep this alive until then.

Its very clear JK bailed now..

[cudjo]

damn I am good, hold your applause please, who is your daddy!  Under a dime, check, no winter program, check, Ollie stripes turning, check check and check etc etc etc. Now Ollie, before you go all cudjo on the board again, you need to consider a few things.  This issue will be for 7.5 million dollars, at a dime with a discounted rights offering, please please please, send daddy some love

[mill44]

No one can say that the Friedlands are idiots. There will be no massive amounts of shares made available to the public.

[cudjo]

thanks mil, so do you think rights offering then?  Or PP by the brother or entity they have been talking to and believe if 500 meters does play nice, would ultimately be the one who came to a party?

[mill44]

According to Kaiser's numbers after the PEA, the fair value for PGD today would be between 40 to 60c. CH6 is fairly well understood, so te next step should not come with a big surprise to the downside. If someone made an offer above 30c, they should be all over this under 20c. Floodding the market with millions of shares would be a risky move. I don't see it happening.

[Kidlapik]

I don't know how the Friedlands can add more to their position, they already own 47%, if there ownership increases more I believe they would be required to tender an offer for the entire company wouldn't they? They could do a rights offering but I do not believe they would be allowed to backstop it or oversubscribe do to their ownership %, I could be wrong. Ekim any thoughts here?

[mill44]

We might see them as the same group, but I am sure that legally, they are 2 different owners. All what I could find about more than 20% ownership was this: What Happens if I Become a 20% or Greater Shareholder? Do not become a 20% or greater shareholder without first speaking with Canadian legal counsel. Canadian securities laws prohibit acquisitions of outstanding securities of an issuer that

[mill44]

It does not seem that more than 20% or even 50% ownership is illegal for publicly traded companies. This article talks about absolute and effective control. https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=9&cad=rja&uact=8&ved=0ahUKEwjDnq67qMfSAhUE9WMKHcSQBTIQFghVMAg&url=https%3A%2F%2Fwww.cpacanada.ca%2F-%2Fmedia%2Fsite%2Fbusiness-and-accounting

[mill44]

https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=9&cad=rja&uact=8&ved=0ahUKEwjDnq67qMfSAhUE9WMKHcSQBTIQFghVMAg&url=https%3A%2F%2Fwww.cpacanada.ca%2F-%2Fmedia%2Fsite%2Fbusiness-and-accounting-resources%2Fdocs%2Fcontrolled-companies-briefing---questions-for-directors-to-ask.pdf&usg=AFQjCNF4fCh0PO5twO3wZkzMpZhWYBT4dA&bvm=bv.148747831,d.cGc

[ekim]

A private placement or Bought...Robert would not be able to participate in and he would absolutely be diluted with his position. Eric has a bit more wriggle room and may be able to participate at some %. They also couldn't do a standby agreement on a rights offering..they can exercise every single right they receive fairly...and not a single one after. They really need a third party here to

[shneps]

I have personally always felt that when Chantal was brought on board it was inevitably going to be a third party investment. That's her job, is it not? Too find someone?

[mill44]

I consider the SP an issue for any third party investment. Even at 25c, to get the funds you would give someone 30M shares. Not the direction they steered this game till now.