AGM at July7th the main issue is re-pricing of 24,4m warrants with original strike price 0,4-0,7$ to 0,26$.
an appr. management circular is filed on sedar today
so, let's explore:
Lee sold about 7m shares ( 2m*0,3 privat and 5m*0,12 on open market) at average 0,17. This shares were purchased at 0.2-.0.4cad, therefore his loss can be estimated roughly by max. 1.000,000$
I guess 5m ( open market) were sold also to dedicated persons ( over TD Sec. and Pershing) and undoubtedly coordinated. In one day Lee's selling was intended for generation a panic attack in order maximize volumes of selling shares to lowest price ( 0.9-0.10). ( this is unforgivable for a chairman)
His official statement is well known - "to shore up some liquidity" )
Now we've got what "some liquidity" (ca.1.190.000 $) needed for
With possible re-pricing ( subject to approval by shareholders) Lee could exercice his 10million warrants to 0.26 instead of 0.4+. Gain- 1.4m$
Result:
Lee came out ahead of about 400.000 ( assuming shareholders would vote in favour)
His dedicated shareholders could gather about 10m shares at 0,9-0.12cad mainly through selling and panic attack caused by Lee personaly
The good thing is this pile of warrants can be resolved with a cash-flow needed for further drilling program
it sucks that til AGM at July 7th stock price will be holding not far from 0.26
But after that can soar.
and now it's your decision to support that or not.