GREY:STTYF - Post by User
Post by
unlimited_awon Nov 03, 2012 12:28pm
410 Views
Post# 20558665
Confidence
Confidence In answer to my question why Sandstorm Management does not opt for any extension of the warrants, Denver wrote me:
Sandstorm may have the potential to raise money at a higher price than $0.70 in the future and depending on how long the warrants were extended for, it could cause share dilution at a significant discount to market value. If all of the warrants were exercised, that would mean an additional 155 million shares outstanding for Sandstorm and although the $110 million would certainly help our growth efforts, we could potentially raise funds with a cheaper cost of capital.
As an extension for more than a year would not make sense, Management seems confident that the share price will be significantly higher than $ 0.70 within a few months from now.....