RE:RE:RE:Loan Interest Paymentlonade wrote: In my opinion they will try to get all shares by end of this year and that as cheap as possible. I would try to do that if I were in their position. Why share if you can have whole pie. I would be happy to have my shares bought for 0,3 cad.
That'd be good for me too, if not spectacular, and really about represents the break up value of the company, before repaying debt perhaps . . . Their end of the enterprise value of the mine during its first years of operation is over $150 million, and goes up from there if the mine continues to produce.
I figured there would be dilution before production, a requirement to get things rolling, and so accounted for it. They could authorize another 100 million shares or so and I'd be ok with my position, or they could do a secondary IPO to raise the money since at that point you're buying a done deal rather than a pig in a poke.
My fear is they'll use a reorganization to take control then dilute the heck out of the stock to their advantage. It should NOT be legal for a company to offer a share subscription and ONLY sell the lots to ONE person or entity, such as what happened last time. I called the DAY it was announced and was told it was already completely subscribed. If there are shares sold at private placement then current shareholders should be offered enough shares at the same price to offset their now diluted position. If we added that to the companies bylaws in a vote next General Meeting that'd do alot to stop that potential foolishness.