Fabled Silver Gold Corp T.FCO

warrants were a good decision

[jon8034]

Yes, alot of people were unhappy they extended the warrants, thinking that washing out the 20million or so shares was a good idea because it effectively stopped/reversed expected dilution of share value. I was not participating here at the time, so I don't know how people on this forum felt about it. Fact is though, that by doing this they kept alot of institutional investors happy - and I would assume some of these are broker warrants so kept the investment advisors happy. Also, more importantly, management expected a share increase significant enough to put these shares into play. By doing this they kept from having to do another Private Placement - which probably would have included warrants anyway - into an investment community that would have just had 20,000,000 shares washed away to nothing, so they probably would not have gotten anywhere near as good of a deal, maybe with warrants in a new offering we would have ended up with twice the share dilution. Additionally, since this is part of a previously brokered deal, they do not have to go through the hoops and delays necessary to get TSX filing/approval, etc to generate the cash. After doing some research, I thought this was a particularly shrewd decision by management, although I think they took some flack for it at the time.