RE: PTO - DILUTION Oh yes..the shocker was the total shares out now fully diluted is 287 million.....no surprise I suppose.
A very pleasant surprise ……. The increase in share dilution appears to have been very well controlled as, within 2 months after the signing of the Sandstorm Agreement at the end of January 2011, the total diluted share capital was 264m shares (REF Metanor MD&A source below). Therefore, since the signing of the SSL Agreement the diluted share capital has only increased by 23m shares. This is even more encouraging, since part of the SSL Agreement to put in $20m was that Metanor would have to raise additional capital to closely match SSL’s input.
It is clear, therefore that the share dilution has been effectively controlled by the VAPORISATION OF most of the 54m OF WARRANTS.
Source – Metanor MD&A
On March 31, 2011, the capital structure of Metanor was:
Common Shares 201,686,865
Stock Options 7,955,000
Warrants 54,298,190
Brokers’ warrants 1,031,506
TOTAL DILUTED – 264 million shares in March 2011.
In my view, the key metric for shareholders is the Market Cap – which is only circa C$49 for a company on the verge of being a producer. Irrespective of the number of shares issued, if the cap becomes re rated to a 60k ounce producer at, say C$200m, then there will be at least a 300% increase in share price for all the 287m diluted shareholders (since the unissued shares also have to pay cash to Metanor)