Reminder - warrantsHere is the news release for the financing from May of 2010:
Vancouver, Canada, May 27, 2010: ESO Uranium Corp. (ESO:TSX-V) ("the Company") announced that it has completed the sale of: (i) 6,666,666 flow-through units at a price of
.06 per flow-through unit, each flow-through unit (a "Flow-Through Unit") consisting of one "flow-through" common share and one transferable common share purchase warrant (a "Warrant"); and (ii) 32,000,000 units at a price of C
.05 per unit, each unit (a "Unit") consisting of one common share and one Warrant. Each Warrant is exercisable at C
.10 per share for 60 months, subject to an exercise acceleration provision triggered (after 12 months from closing) by the closing price of the shares at
.20 or higher for 30 consecutive trading days (the "Acceleration Trigger").
Just thinking about the share structure here... We need a closing price of 20 cents plus for 30 consecutive days to trigger the acceleration clause. I'm buying in with a small amount for this PP but did not purchase any from the 2010 financing. If you went to the bathroom right after the PP news this week then you were likely too late to buy into it by the time you got back from the crapper. They only wanted the bare minimum to do the drilling. Being able to exercise warrants at 12 cent isn't bad for a 10 cent PP. They were not willing to over-subscribe... so I would expect the SP to go up significantly in the near future. This could get pretty exciting in the next little while. I'm inclined not to worry about dilution from the May 2010 financing cause if they gots what I hope they gots then it won't matter and the extra cash will just make them stronger. It's nice that they have such a solid partner on the JV.
Anyone care to comment?