7936567 Canada Inc SWYDF

Metals & Mining Industrial Metals & Minerals

Stornoway Diamond Corp is a leading Canadian diamond exploration and producing company. Its principal business is the development of its flagship asset, the fully-owned Renard Mine, located in Quebec, Canada. The company intends to grow its business through the exploration and development of its mines. Stornoway also holds interests in a portfolio of exploration assets across Canada through owned properties and joint ventures. These properties and joint ventures include projects such as Adamantin, Qilalugaq and Pikoo.

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7936567 Canada Inc

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Comment by mjl777on Dec 06, 2013 10:35am

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Post# 21978526

RE:RE:RE:Change of heart

I agree that a financing announcement is imminent. The most likely form? I would guess either a highly dilutive rights offering, or a relatively less dilutive j.v. - one featuring a Goodman connection. A rights offering would insulate the company and allow the big boys to average down significantly.

Alternatively, we could see a buyout that would leave many legacy shareholders out of the money. The best alternative? For me, that would be a diamond streaming deal (or forward diamond sales) similar to the Silver Wheaton/Sandspring deal. Then have IQ bridge the balance of the required equity until the company's stock price recovers.

BTW, according to Robert Friedland, rights offerings are the fairest form of equity finance known to man and "non-dilutive". I'm not sure what Friedland meant by non-dilutive. All equity finance is dilutive. Rights offerings are only unique, only insofar as they allow existing shareholders to maintain their respective ownership positions, if they so desire. Does anyone have any insights to share on his comments?

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