VCSoho has decided to purchase Jocuixtita with an additional 7,435,200 shares if the purchase agreement is to be exercised at the present share price level.
Presently Soho has 131 million shares outstanding.
The recent large investors can further dilute past and present public shareholders out for an additional 21 million shares when exercising their warrants:152 million shares.
Jocuixtita purchase:159.5 million shares.
Soho has stated further dilution is necesary to explore their new project.
Page 6,Objective Capital Report:
The company proposes to conduct an initial exploration programme of up to C$0.5m on the project, whichit thinks will allow it to raise funding to continue to explore the project buildingtowards an initial NI 43-101-compliant mineral resource estimate over the subsequent months.
As we have reached 160 million shares outstanding and now with stated, additional five years timeframe established by SOHO to develop
Taheuheuto) we can expect further shareholder dilution if Taheuheuto is developed by SOHO in the manner they now demonstrate.
Additionally,we can expect Soho management to rollback Soho shares on a grand scale if Soho manangement wishes to continue their destruction of present shareholder valuations without adequate financial partners.
Any new investor in Soho should conscider these facts and question Soho management as to why there are no financial partners brought in to develop their projects and if they are capable and willing to do so.
To date they have not.
Furthermore, Soho management have stated no intentions whatsoever to develop and fund their projects by any means other than further dilutive shareholder financing arrangements.
Soho can choose to locate and have Taheuheuto developed by a partner(s) without diluting their shareholders further .
Present management is not showing any indication whatsoever that this is their intention.
The OBJECTIVE CAPITAL report clearly states further shareholder dilution is the financial route chosen by Soho management to develop their projects.
Page 8 Objective Capital Report:
Soho’s expanded share count has a strong negative impact on our valuation.
Like most junior resource companies, Soho has repriced most of its existing options and warrants significantly lower.....
Page 6 Objective Capital Report:
The company proposes to conduct an initial exploration programme of up to C$0.5m on the project, which it thinks will allow it to raise funding to continue to explore the project (Jocuixtita).
Page 5:
With Soho continuing in a cash preservation mode, no immediate exploration is planned this year at Tahuehueto.
Page 6:
Based on current resources and anticipated additions over the next few years......Soho management SHOULD conscider their shareholders investment losses to date-time and capital.
Potential investors should question whether management is capable of developing their projects expeditiously without the public shareholder dilution we have experienced and can expect.
Maybe Soho has a plan to have another company develop Taheuheuto after the PEA but SOHO HAVE NOW STATED that development and feasibility on Taheuheuto'is not urgent'.Page 5, OCR.
To me,this is unnaceptable unless a partner is being conscidered to develop the project.
Otherwise,I see further dilution of Soho shareholders equity and ultimately a share rollback.
I would appreciate any comments or suggestions if I am not extending the company's stated intentions and my views as a large private shareholder.
Ultimately,I have a desire for maangement to develop Taheuheuto with a respectful partner that can finance production without the excessive dilution we have experienced (and will continue to experience)as shareholders.