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North American Gem Inc V.NAG



TSXV:NAG - Post by User

Post by jc257on Sep 08, 2010 10:50pm
511 Views
Post# 17427552

so the major problem

so the major problem
is that little investors (if not none at all) are interested in NAG at 12 cents (for whatever reasons).
In my guess -- hypothetical really, the company is already incurring the cost to produce at mine #3 (equipment, people etc). Any delay in finding the money for placement of bond thus means extra pains. Accordingly, it is natural to offer at deep discount so that the company can jump start the bigger and possibly more profitable mine. I would believe this is common practice especially when your sources of financing is really limited.
The lowered size of issuance from 1.8 mil to 1 mil could be because
1) the initial pp is partly filled or/and 2) revenue is generated from mine #2
So, I'm very frustrated and disappointed, but the decision is rather understandable if this is purely to activate mine #3. 
I will not throw away my shares at the ridiculous price level under 10 cents. Once pp is filled and mine #3 is running, it is so sure that sp will be back to at least about the today's closing.
Sigh... but cheers for longs.
JC
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