Inducement WarrantsI have spent the day reading past NR's...re-reading post....and thinking.We have two sets of Inducement Warrants ....Sprott et al and the Orifer warrants.
Lets' look at the Sprott warrants first and how they came about. Sprott and a few other funds and people financed YNG to keep it afloat when bank or convention financing was not available....If it had not got the financing....YNG would probably had gone under....so they deserse some special rewards for their actions ....that is what the Inducement Form in front of us now,,,,to agree to give Sprott the Inducement warrants at their agreed upon prices ....this was all part of the deal.
I am going to vote "For" for these Inducement Warrants
Now we can talk about the Orifor Inducement Warrants.....now if these are not passed by the voting shareholders and the TSX certain things will happen....one thing is Orifer will not get commanding and effective controll of the company. The price of these warrants have not been fixed yet........here below is how they are fixed from the NR dated Oct 14, 2009
"
The Class A warrants have an expiry date of December 19, 2009 and the Class B warrants have an expiry date of June 19, 2010. If a holder elects to exercise an Existing Warrant, the Company would issue to that holder an inducement warrant (the "Inducement Warrant"), representing the same number of shares as the Existing Warrants exercised by the holder. The Inducement Warrant would be exercisable for 24 months from the date of issuance at a price that is the Company's shares' volume weighted average trading price as traded on the TSX for the five days immediately following issuance of this news release. The holders only have until November 13, 2009 to exercise Existing Warrants in order to qualify for Inducement Warrants.
As you can see the strike price on these warrants is based on a 5 day average from Thursday Oct. 15, 2009 until close of trading Wed. Oct. 21, 2009.
Also there is this part of the NR
3. if the TSX approval or Company shareholder approval is not obtained within 30 days, the Company must repay the Loan within 14 days from such date.
If we do approve these Inducement Warrants this what happens
"Upon exercise of the Inducement Warrants and the Warrants, Orifer would then hold 270,000,000 shares, being 45.75% of the Company's then issued and outstanding share capital. Therefore the exercise of the Existing Warrants and Inducement Warrants by Orifer could materially affect control of the Company, as set out in the policies of TSX."
So we have 2 choices either not approve the Inducement Warrants ....then the company would have to pay back as per Para 3 above ...can we survive ...maybe...could get secondary financing....a white knight might just come floating by....or we can raise the funds ourself through a subscription...with warrants of course
I, myself will not be voting "For" the Orifer Inducement Warrants ....I would rather see the existing share holders have subscription rights through an offering with warrants attached.
Or if we approve the Orifer Inducement Warrants, Orifer will end up with effective control of this YNG
So, what do want to do fight....or sit back.... I really think the press should get involved....even the Finance Minister...foriegn company steals BC gold company from the Canadian shareholders....Maybe talk with the boys at Sprott.........Just my thoughts tonight.......Richard
....I would rather see the existing share holders have subscription rights through an offering with warrants attached.