My opinion about the Warrant Extension.First of all, Jet, thanks for the info. This likely won't surprise you one bit, but I still disagree with all of you that say changing this agreement was not unfair. Here's why.
From the PP NR on February 27, 2003 that I copied below. (Couldn't find the one they state occured on March 18 2003, but I'm sure it's the same if not very similar. If anyone can find it, please let me know.)
From what I understand, SCS offered a private placement to all investors of 1,500,000 units at $.20CDN each. SCS recieved $300,000CDN for this.
The investors received 1,500,000 shares at $.20 and the OPTION to purchase one additional common share of the Company at the exercise price of Cdn.$0.25 for a period of one year.
IMO, this option to purchase one additional common share is a great incentive for investors. According to the NR there seems to be absolutely no risk. If the share price is below $.25CDN, don't purchase the shares. If the share price is above $.25, you can buy shares at a discount. They had a year to use this incentive. Seems like an OK deal to me.
Well time has past for this group of investors and things didn't go according to plan. So what does the company do? They change the agreement to give this group of investors (and I believe they are part of this group) another year to have the option to buy shares at $.25.
Well, things haven't gone according to plan for the majority of us here either. I'm not complaining about that. What I am complaining about is, why do they get this option and we don't.
How about giving all of us this option. If the price goes to $2 by labour day like Jetstream predicts, we can still purchase shares at $.25 and then sell them for close to 8 times this price.
My problem is, the company changed the time value of the warrants. IMO, this is unfair to all other investors, whether the Exchange allows this or not.
For Immediate Release February 27, 2003
SCS SOLARS COMPUTING SYSTEMS INC.
Vancouver, B.C. – SCS Solars Computing Systems Inc. (the "Company”) announces
that its proposed non-brokered private placement of 1,500,000 units at a price of
Cdn.$0.20 per unit for total gross proceeds of Cdn.$300,000.00 has been fully subscribed.
The Company announced the financing on February 10, 2003. Each unit will consist of
one common share of the Company and one non-transferable share purchase warrant.
Each warrant will entitle the holder to purchase one additional common share of the
Company at the exercise price of Cdn.$0.25 for a period of one year.
The proceeds of the private placement will be used to fund the further development and
marketing of its LiveLinx, SolarNet, Newswire and TourTek products and for general
working capital.
The Company is proceeding with it application to the TSX Venture Exchange for
approval of the financing.
SCS Solars provides solutions in information management and electronic distribution for
the travel industry. Proprietary products include SolarNet LiveLinx, NewsWire and
TourTek. SCS Solars is a public company, trading on the TSX Venture Exchange
(TSX:V) under the symbol SCS.