TSXV:FCO.H - Post by User
Comment by
materialsgirlon Jan 10, 2018 1:01pm
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Post# 27324884
RE:RE:forced conversion of warrants
RE:RE:forced conversion of warrantsufoolme;
Your comments are reasoned and obviously, you are clued into reality.
You did say
"In the meantime, there is no reason to force the exercise of these warrants, and I don't think it will happen."
There are numerous reasons for ECS to force the exercise the warrants
1 For over 20 years the company has not been successful in raising funds to build a mine. They may also fail to raise the capital under acceptable terms in 2018. In this case, the additional funds can be applied to drill or continue preconstruction. If the warrants are not exercised we may have to wait one year for the money OR if the share price dips down under about $1.55 the warrants may never be exercised
2 They can earn circa 2% interest on the funds. Sure, this s only lunch money but it is money nonetheless.
3 As a point, the exercise causes no dilution. The dilutionary effect is already embedded into the valuation.
4. As a comment,, there is no reason at all NOT to force the exercise other than to cuddle up to a few big investors. There are zero benefits to waiting. Zero.
Your overall comments are well founded and well reasoned
mat