RE: WATCH OUT, WATCH OUTI know you all do great DD before you invest and so periods of weakness should not be a surprise. For those that don't then the following may be a surprise to you. I invested in SPM fully aware of the warrants o/s and fully prepared to see periods of weakness. One of the reasons may be when a lot of these warrants are translated into shares. In my opinion they gave part of the farm away w/ last year's large equity raisings. That said SPM is STILL my largest Silver holding. Its hard to believe it costs over $3m to ask a bunch of brokers to steal from you!
During the year ended December 31, 2006, the Company closed a brokered
private placement and issued a total of 35,363,300 units for gross proceeds of
$40,667,795 in two tranches. Each unit consists of one common share and
one-half of one common share purchase warrant. Each whole warrant entitles
the holder to acquire one common share of the Company at a price of $1.40
per share. The first tranche closed April 24, 2006 whereby 31,623,300 units
were issued including warrants expiring on April 24, 2008. The second tranche
closed May 3, 2006 whereby 3,740,000 units were issued including warrants
expiring on May 3, 2008. The Company paid a cash commission of
$3,197,828 to the agent and certain finders. The Company also issued a total
of 2,120,047 compensation options to the agent and certain finders, each
compensation option entitling the holder to purchase a compensation unit at a
price of $1.40 for a period of 24 months from the completion of the placement.
Each compensation unit consists of one common share and one-half of one
common share purchase warrant.
Each whole warrant, including warrants issued on exercise of compensation
units, entitles the holder to acquire one common share of the Company at a
price of $1.40 per share for a period of 24 months from the completion of the
private placement.