BUK Has Too Many Shares/Warrants O/SSince my last post, I have had a chance to read their annual report & management info circular. The number of shares & share equivalents outstanding are even scarier than I thought. This tiny, barely profitable company has the following outstanding at present:
* 133,648,368 common shares (and more to be printed soon according to a recent media release, to buy Idaho properties).
* 69,726,706 warrants, ranging in exercise price from $.95 to $1.35. This suggests that the stock will not climb over $.95 as there are 43.2 million out there at this price.
* 8,100,500 options issued - given to themselves for a job well done, at prices from $.30 to $1.50. (They have another 5,183,796 common shares set aside in treasury for future option giving too).
* 13,333,333 convertible notes expiring in 2013.
If everything is converted to common shares, you would have a total outstanding common share count for this tiny company of 224,808,900 shares!!! That's right folks, a quarter of a billion shares. If this ain't dilution - I don't know what is.
To rub even more salt in investors faces, they want us to approve their amended stock option plan at the Sept.10 AGM. This will allow the BOD/Mgmt to extend current stock options for up to 10 years so they don't lose their unearned gifts (currently they all expire between 2010 and 2013). Isn't that nice?
This is the most incestuous share float I have ever seen for a company this size. The dilution is a killer for those of us who bought BUK shares in the past at higher prices. And they just keep issuing more of them helter skelter. To provide some perspective of what other much larger O&G companies have for shares outstanding - Encana 751 million, Imperial Oil 847, Suncor 935, Crescent Point 150, Arc Energy 237. Most mid-sized companies with $hundreds of millions in revenue do not have as many shares issued as Bridge does.
Hope everyone votes against each director standing for election and against the amended stock option resolution (item # 4) in the Sept.10 AGM.