up we go? Just imagine you re one of those shareholders on the preferred list. And imagine you already hold stocks and dont want to grow your overall exposure.
What could you do?
Yes, you sell your stocks now for 0.20
And buy the same amount of preferred stocks for 0.17 and get half a warrant with it as a bonus.
What does that mean: if only 5% of shareholders think this way, the stock price will not move up in the next weeks, but probably temporarily even test 0.17 CAD. Even today it was shortly down to 0.18 already.
What else does that mean? Well, as already mentioned in this forum, we now will have a LOT of warrants that have to be executed in the next 18 months. So you bet that once the equity raise is done, the share price might go up (if zinc holds up), but with prices rising over 0.22 CAD we will see our warrant holders selling.
Nice investment story for normal shareholders?
Just to add: with the number of shares up about 20% of course the book price per share now is down about 20%. We were at 50% book price at 22 CAD, now we should be at around 60% at 0.20 CAD. So you re still having about the same share price than last week. But with about 20% less value for it.