OTCPK:MEAOD - Post by User
Comment by
parapooperon Mar 06, 2009 9:41am
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Post# 15825378
RE: Almost every gold miner is up today
RE: Almost every gold miner is up todaythis is how I understand it:
They sell 30M shares @ 0.5 and give away 1.8M to bank.
They get $15M and pay $0.9M to bank.
--> they get $14.1M for 31.8M shares --> .44/share (not even considering 15M extremely low-priced warrants)
The 35cents I mentioned are based on the 60% dilution including warrants (56cents/1.6=0.36cents) and are more realistic if you are assume that Metanor was way undervalued before the dilution (and why else would you be invested in a junior miner). So if you think Metanor shares have a way higher value than the current SP and if you were operating on the assumption that they would get to that value without further dilution then the 60% dilution divides the potential future price you think they can achieve by 1.6.
Add to that that most MTO investors were not previously aware that MTO management are lying sacks of shiite and its a miracle how well the SP performed yesterday,