RE: arbitrage
There is a risk of this artbitrage, if the special meetingon 3/25 vote not to approve of this financing to cancel the hedges.
Why would that happen?
This will happen if the existing common shareholders do notwant the dilution, and want to wait for the hedges to be carried out till theend of 2010. It is only a few months, so why suffer this 20-25% dilution.
The other is an acquirer appears. If someone comes with anoffer of $4 for OGC, on the condition that this financing not be approved, or theoffer would change to $3 if the dilution is carried out. Then the OGC common shareholderswould vote down the financing, OGC would return 2.05 to the subscription holders,and OGC share rise up to $4. The 0.20 gain now would become 1.95 loss.