Gatekeeper Systems Inc V.GSI

Analysis of Financing

[retiredcf]

It is a bit of a unqiue situation. In August, GSI indicated one buyer wanted 'the entirety' of the financing. Thus, this buyer had a lot of power in driving the price. Though there was an initial price set, with the stock in decline the buyer was likely trying to negotiate a better deal. The company likely balked at a new price. The deadline was Dec 1, and a deadline is a deadline. It is entirely possible a deal could have been reached yesterday, if price was the ONLY sticking point. 

So said 5iResearch yesterday. And don't forget that the kicker for this unknown buyer was that they were going to get 6.5M warrants with a strike price of $1.10 so that would also have been part of the negotiations. Good move by GSI management to stick to their guns. Onward and upward. GLTA

[Ciao]

IMHO, that makes no sense.  The investor came in when the share price was .63.  It didn't drop below that price for 3 months, only dropping below .63 in the last 2 trading days before the Dec. 1 deadline when investors realized it wasn't going to close. The investor(s) knew that their offer to take up shares at a premium moved the share price up.  They also knew that the

[fergus2]

Interesting posts from ciao and retiredcf.  I wonder if Ramman1 davewho, HenoftheWoods ot Ottawa10 could weigh in on that subject. 

[davewho]

I stated yesterday that IMO there was more to the deal than the money. Doug is pretty sharp and would have cut them loose long ago if they were trying to get a better price. There was something else compelling about the deal for GSI. Maybe we will find out eventually. It won't surprise me a bit if the investor does come back. But in the mean time we will do fine. 

[Torontojay]

I'm very suspicious to the whole deal but I'm still a long time shareholder and I'll continue to buy as the stock price moves up. One of the best stocks on the tsx v as there are not many profitable stocks out there. 

[ol_griz]

Also possible, but quite a head scratcher as to why it hit such roadblocks.  If there was any kind of qualifying rider to the deal, the co. would have been obliged to disclose with the initial NR.  And  otherwise, what sort of hitch could be so devastating that the deal couldn't close in months?  So ...  I hope this may turn out to be the case and the deal eventually

[davewho]

I guess in very simple terms Doug and the BOD's may have felt the sp would be damaged of they cut the investor loose. But surely they would have seen that coming a month ago and it did happen regardless. I still think it was possible access to an OEM bus company as standard equipment or access to new markets in another country that kept GSI in the game for so long. If anyone finds out the REAL

[HenoftheWoods]

Greetings gentlemen. I'm on the side of those who believe this deal was tied to a contract. If it was a straight up money for shares exchange, I don't understand why the pp people would start delaying the closing of the deal instead of rushing to finalize it as the latter was to their clear disadvantage. The annoucement of the deal should have been a highly successful event in

[besttobe]

Heno...Do you provide Cole notes? forget the PP. Done deal and over. 

[HenoftheWoods]

@besttobe lol do you need some? Cheers.

[checkup]

This post has been removed in accordance with Community Policy

[ol_griz]

This is the most reasonable evaluation of the events I've seen.  Unscrupulous, but it seems these days that ONLY money talks.  Honest dealing walks.

[Torontojay]

Im with you here. Imagine how much money you could have made playing options on this price movement. 

[besttobe]

What ever happened it should be investigated, because none of it makes sense. Appears Ciao has triggered that investigation.