Samco Gold Ltd V.SGA.H

RE: Stock Price / kazinti

[Goldbuggy2]

Thank you for the compliment kazinti. It is true that the company plans on raising C$110M, but they will not do this by all share dilution. They will raise C$66M by selling shares, and another C$44M by selling Corporate Bonds. The company has about 55M shares outstanding right now. The shares were trading at about $1.30 when the announcement was made. As I pointed out already, we do not know what share price they are selling these stocks at, but one can assume that it would be close to the price on announcement day. That puts selling them at say $1.30. That means they will only need to sell about 50M more shares. With the 55M they have already have the grand total would be 105M. Throw in some for over allotment and we would end up with about 110M maximum and C$6.5M extra cash. As you can see, this is a far cry from your prediction of 150M to 170M shares, so may I kindly suggest you rework you last figures. It is technically possible that with these one half warrants, we could be forced to sell 25M more shares, and then this would put us at a maximum share dilution of about 135M. With Options, perhaps 140M. What you have to keep in mind though is that these are warrants, and are not shares, and thus don't sell at the same price as shares do. I would guess they would sell for no less than $1.70. So if these warrants are converted into 25M shares that would give us an extra 42.5M. With the over allotment of C$6.5M we would have at least an extra C$49M, as I don't know what the option price would be, and thus add even more money. But either way, we then could pay off these C$44M Corporate Bonds and be in better position to profit from all our gold. I do agree that the market has not taken too kindly to this news, but it is also times like this that the big hedge funds jump onboard to shake the Apple Tree, and distract and confuse retail investors. To me, this news is positive, and I am not going anywhere regardless of this current low share price. The way is see it is just a big Hedge Fund delivering a Sucker Punch aimed at Retail Suckers. That is why our volume is low to. IMVOHO GB