Conference FridayI was in on the conference Friday and came to similar conclusions as Kayday and the rest of the gang. I was the one who asked the question about the two potential sources of funding, and wanted to know if they were equity sources, or debt sources. Bob indicated that they will be forms of equity if it does happen. It sounds like this is a likely outcome (although it isn't a handshake deal as of yet). I think these two institutions in Toronto might get some form of discount in forms of share price or warrants. Bob was careful as he answered this and took his time in doing so. I followed up with a question regarding Stormont's future role in funding and he said that he would imagine that it would be in forms of equity. I got the sense that this was something that was being seriously considered as he didn't use "if" and just said it would in the forms of equity. Keep in mind that the board apparently rejected Stormont's offer to partially fund the company in forms of loans. There isn't a question on funding in my opinion, just how good of a deal can we get as shareholders if we take this through phase II.
In my opinion we have bottomed for the following reasons:
--> The people who participated in the PP are locked up for the next 3+ months and can't crash the share price in the short-term.
--> Due to the PP being done at a significant premium, many investors are buying, or are going to buy on the market instead (myself included). This will bring back the share price quicker.
--> After the PP last Feb, we bottomed a month after the close of the PP. I think this time around we will bottom quicker for the reasons I am listing.
--> Most people thought the breaking point for just buying on the market (rather than the PP), was in the range of 13-14 cents, therefore there should be significant support at that level.
--> My opinion is that the 2 million will be raised through alternative sources, therefore the game of buying and selling over and over to get into the next PP will not exist anymore, and buyers will be forced to buy on the market when they want to buy.
--> Warrants and options aren't even close to being in the money, therefore there should be no selling pressure in this regard until we are above 20 cents.
--> Most of those who wanted to sell have sold long before now. There are more buyers on the sidelines than there are sellers who own GAP (in my opinion).
--> This is a news driven stock and there hasn't been any news besides the PP in over 6 weeks.
--> Sokoll is not an academic! This is a good thing as he portrayed clearly on the conference call his timelines, and how he will get things done. Outsourcing the data away from the slow moving NRC was the first of many great decisions that I think he will bring to the table in speeding things up, and getting more reputable data.
--> There is currently 400,000 shares sitting at 13 cents, and 261,000 at 13.5 cents. This is subject to change, but these bids have been mostly there for the past couple weeks.
These are my observations and the conclusions I am drawing. Do your own DD.