RE:simpliciti Your Thoughts as follows:
One doesn't throw $14 million at a company without some prospect for a return on investmentno matter who you are.
With this position Sprott will be deemed an insider, so you can bet that he knows a hell of a lot more about what's going on than the company has shared with a regular Joe shareholder.
By way of example: You don't invest $14 million unless you know what the cash is going to be used for, when, where and by whom.
Why is it needed now when the company could easily have collected a significant portion of $11 million (value of the outstanding callable warrants). Does this mean they will not be calling those warrants for early expiration? Talk about de- risking? Brutal.
So to the extent we understand that Mr. Sprott is no dummy then I suppose this is a good thing at least for him
Having said all of that we still don't know how many of the nearly 8 million 35 cent warrants have been exercised per the notice.
Nor do we know what the company plans to do about the remaining 22 million 35 cent warrants that they have yet to call.
Lots and lots of shares to be issued that will surpress the share price increase. On the basis that all of the above are exercised we will have effectively increased the float by almost 20%.
At present the shares are trading at about 10X the value of their cash on hand.