RE: RE: RE: $5 Million for GOLDMy old buddy TC...Sorry but I believe that you are beginning to get old and forgetful on how these things usually work.
FT's more often than not do have warrants attached(see below). As far as always getting a premium, this also is not always the case(see below)...it is company by company depending on their strength. A 20% premium can make FT's for a company quite attractive. MOA is very strong at the moment and I suspect than since there were no warrants attached to this FT( and that there likely would have been for hard $'s; plus additional costs and fees) they chose to take this route with this good premium thinking that these FT's will stick around longer than usual and thus managing to provide less dilution(more than 20% less) than obtaining hard $'s at say $.85. I think this is a fine deal and shows clearly that MOA's premium to market is at the top end.
For proof: Here is one I noticed yesterday from a little company I used to follow because they were also in Newfoundland. I will note: NOT ONLY DID THEY NOT GET ANY PREMIUM TO MARKET(it was actually a small discount to market) - THEY ALSO HANDED OUT LOTS OF WARRANTS(6.25 MILLION) AND PAID SOME BIG COSTS AND FEES..
Buchans Minerals 12.5-million-unit private placement
2010-10-26 17:12 ET - Private Placement
The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Oct. 18, 2010.
Shares: 12.5 million units; each unit consists of one flow-through common share and one-half of one common share purchase warrant
Price: eight cents
Warrants: 6.25 million share purchase warrants to purchase 6.25 million shares
Exercise price: 12 cents for the first 12 months from date of issuance; 15 cents for the next and final 12 months from date of issuance
Hidden placees: six
Finder's fee: $54,000 cash and 787,500 non-transferrable warrants payable to First Canadian Securities; each warrant entitles the holder to acquire one common share at a price of 12 cents for the first 12 months from date of issuance and 15 cents for the next and final 12 months from date of issuance
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.C.Gert