TSX:SGR.UN - Post by User
Comment by
haywoodmanipulatoron Mar 05, 2012 4:21pm
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Post# 19629064
RE: RE: Time to re-price the placement?
RE: RE: Time to re-price the placement? the recent share offering was a flow through-so there are tax benefits associated with the stock investment-you are comparing apples and oranges. Nevertheless, flow throughs are generally priced 25% higher or so than the regular share price, so, as of this moment, it doesnt looklike a good deal to buy at 2.10. However, not sure if the investors are committed or not as of yet. I would be teed off big time at the employee option pricing being done at a substantially lower equivalent price BEFORE the deal was closed. That is outrageous. If San Gold was in some way obligated to issue employyee options at this time (for whatever reason), and If San Gold management had any integrity, they would deliberately priced those employee options at a price well above market price to illustrate their belief in the company prospects, their respect for shareholders, and their credibility.