Something Has Got To GiveI agree with you both Phibins and Trend. Trend is correct as well on not being able to do a PP lower than 5 cents. Rules from the Exchange.
Stormont seems to be content with continuing to accumulate GAP shares. As of June 30th Bryden (Stormont) just bought ~$500,000 at 14 cents. On a non-diluted basis he owns around 21% of what's out there.
My personal stance is that I'm not supporting them in PPs anymore until I see a notable change in the ways they are attracting/managing capital. I know that I am not the only one sitting in this boat waiting. As I have mentioned before, my optimism back in the early part of the year was because there were significant signs that things were changing. Trend and others can back up that statement.
Based on the company needing ~$1.25mm by year end ($250,000*5), I think it might come to the point of Stormont stepping back in again to provide further funding until we are at a stage where institutional money comes into play. In my own opinion I think it is Q1 2012 (after announcing initial target), when that could happen.
Who knows how low the GAP share price could go in the short-term. Stormont is sitting on >20% of the shares and they will keep funding it if no one else will. Mr. Bryden seems very confident with his stake in GAP, even if he looks wrong in the short-term.
The figures I am using is that this company is worth $50mm as we file for IND, and $100mm after successful completiong of phase I....Just when are we going to get there and how many shares will be oustanding by that time? Sokoll has done this process before and he made sure to reinforce that to me.
Have a great weekend everyone.