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Bullboard - Stock Discussion Forum Providence Gold Mines Inc V.PHD

Alternate Symbol(s):  PRRVF

Providence Gold Mines Inc is a Canada-based company engaged in the exploration and evaluation of its gold mineral property located in California. The company holds an interest in Tuolumne properties. Tuolumne Property includes six parcels and thirteen 20-acre mining claims. The company is organized into business units based on exploration and evaluation assets and has one reportable operating segment spread across two geographic locations, being that of Acquisition and exploration and evaluation in Canada and the United States.

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Providence Gold Mines Inc > Why Would an Established Company Have Convertible Equity?
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Why Would an Established Company Have Convertible Equity?

KozmoT (415) | July 04, 2022 04:52 pm

From the link i posted earlier ...

..."Some reasons for this could be:

  1. The company might be insolvent
  2. The company might owe a significant amount of money to various creditors
  3. The company might be facing a lawsuit wherein it is nearing insolvency and needs financing to recoup the funds spent on litigation"

RE:Why Would an Established Company Have Convertible Equity?

givemeabreak1 (684) | July 04, 2022 08:35 pm

Think of a convertible equity as a bridge loan towards other types of financings.  If other types do not show up by the time the loan is due say finito.  As for pricing it is usually quite heavily discounted with all kinds of protection clauses for the holder.....

I have not seen alot of these in the mining space whereas they are used quite oftern for IT startups.  

Whether it is good or bad all depends on the terms of the c-equity.  One could argue and financing is a good financing at this stage.  The junior space is so hammered I am surprised this one is not at 3 cents yet.  There are alot better stocks out there than this one at some pretty cheap valuations.

RE:RE:Why Would an Established Company Have Convertible Equity?

KozmoT (415) | July 04, 2022 09:29 pm

Its what down and out companies try to do just before insolvency. And given they just tried and failed to do a financing at a mere 7 cents and current bid is $0.045 I'd say it does NOT look good for this crew.