NCIBIf GDNP really believes that the current share price is undervalued they should consider an NCIB for 10% of the outstanding shares.
At 279,040,427 shares outstanding would result in the cancelation of 27,904,043 shares. The new number would be 251,136,384 for a cost of $2,790,404.27 assuming they buy at 0.10 cents.
Yes this would involved a $2.7M debt (assuming all purchased at 0.10 cents) but perhaps the best way to use capital at this point. If they repeat this for another year shares outstanding = 223M.
As this occur, the perception of the company as an indebted serial diluter would change. The signal to the market would indicate that they are treating their shares as a resources that they value.
Chances are the stock price would go up and they would have the options to purchase more or not depending on the price. Anyways, the idea here is that they are responding to the market!
To think about doing an acquisition at these levels does not seems to make sense. Even if you are getting a crazy deal, there are always cost involved in the transformation.
GDNP is really at a crucial moment in its history. The way they get out of this bind and move forward by responding to the market will really indicate the type of company it is.
The question now is whether GDNP will be "good natured" to existing shareholders?