GREY:DULMF - Post by User
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Tradeit2on Apr 20, 2007 2:59pm
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Post# 12648374
Private Placement Dillution
Private Placement DillutionSharecropper & Besi: Just a word to the wise. You might expect DM to trade down to the PP level @ $1.15. In my experience that has happened a lot. Most recently with ADA, a zinc/gold company that's going into production next week. ADA was trading in the 1.20's and the PP came out at 1.05. The shares promptly retreated to that level. You have to take into consideration there's a 20% dilution in your shareholder value (adding 12 mil shares to the 48 mil outstanding). That's not to say I'm not a long term supporter of DM, I am. The 1.65 warrant exercise price shows optimism (though over 3 years).