RE: RE: RE: RE: RE: Only a matter of time
That's how they play when they get a PP with warrants - the ideal game is to run the stock up above the PP price prior to the PP, short into the price spike to unsuspecting retailers, cover the short with the PP shares and then hold the warrants as a lottery ticket. Doesn't work as well without the warrants, and since the PP at 1.90 the shareprice has been all down - not much chance to dump at anything other than a straight loss, so I suspect the PP participants in this case got caught same as the rest.
Perfect example Pilot Gold today:
Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., and including Canaccord Genuity, CIBC World Markets Inc., Haywood Securities Inc. and Scotia Bank (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 12,500,000 units of the Company (the "Units") at a price of C$1.65 per Unit (the "Issue Price") for gross proceeds to the Company of C$20,625,000 (the "Offering"). Each Unit will consist of one common share of Pilot Gold (each, a "Common Share") and one half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one common share of Pilot Gold at a price of C$2.20 at any time prior to the date which is two years following completion of the Offering.