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Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Comment by denisonodon Apr 28, 2012 11:13am
172 Views
Post# 19847773

RE: warrants expire Dec.23, 2012

RE: warrants expire Dec.23, 2012

Eswiles,  I beg to disagree with extending the current warrants.  This gives increased value to only the current warrant holders.  These may be the original stock/warrant purchasers or simply individuals who later purchased the warrants in the open market.  Instead, i offer an idea.  How about (after the warrants expire, assuming they do expire), issuing all shareholders either rights or warrants for 2 years at .70 (or what ever price the board sets) based on a 1:2, 1:3, or 1:4 basis.  Currently, there are ~317,849,272 shares and ~155,462,490 warrants outstanding.  If all the current warrants are exercised, it would raise ~$108.8M.  A 1:2 offering would creat ~158,924,630 warrants/rights that if exercised would generate ~$111.2M.  If 1:3, it is ~105,949,750 wattants/rights and ~$74.16M.  If 1:4, then it is ~79,462,317 warrants/rights and ~$55.2M. This is all assuming a .70 strike price.  I will be writing the company soon about these ideas for potentially raising funds...if the current warrants expire worthless. 

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