TSXV:ART.H - Post by User
Comment by
Baxter4on Oct 06, 2010 6:28pm
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Post# 17537670
RE: RE: RE: News - Private placement at .60
RE: RE: RE: News - Private placement at .60Talk about really goofy math. This is why you should never believe a thing good40 says. This is what he posted:
if the regulators would have approved it. They didn't, so now there is an extra 30% royalty on the KRGs previous 10% interest. Don't forget, an extra 10% isn't an increase of 10%... it is an increase of 10/27 or 37% greater than what VST previously held.
Therefore 37% of their previous potential production is now subject to a 30% royalty. 63% of their current potential production is subject to a 10% royalty... right off the top.
The first paragraph is correct, Vast increased their holdings by 37%. However, through some slight of hand he has managed to take that 37% increase and make it into the additional portion of Vast's interest. Anybody with grade seven math should know the portion of the potential production subject to the 30% royalty is 10/37, or 27%, not 37%. Conversely, 73% is subject to 10% royalty, not 63%
More Goofy math is stating the risk factor is 40 cents per share. If you are buying shares for 60 cents plus a warrant, you are risking 60 cents/share. If the price plunges in the unlikely event the well is dry, the warrants are worthless as will the shares be.
BTW, We don't know if the regulators didn't approve the extra shares, that was just goofy's theory. Doesn't matter now anyway.