RE: Mark101 but when Yes it would create lots of dilution but imagine if Dundee would finance WOF by doing a Private Placement and buying 100 million shares for $10 million which means they pay .10 cents a share.
Then WOF completes the testing that is required and bam, there's a buyout of WOF at .30 cents a share.
Dundee would walk away with an extra $20 mil in profits just like that !!
I'm not saying this is exactly what will happen, I'm simply trying to make a point .... financial institutions like Dundee make their money by identifying (or taking advantage) of companies that are in desperate needs and very vulnerable.
That last news release was made to sound very bad and create panic among sharholders just to drive the SP down and create an opportunity for someone to make a financing deal. It's all part of the game.
In a perfest world a good CEO that is developing a junior company would try and take every precautions not to put his company in a vulnerable position where a financial institution can come in and rape the shareholders.