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Sandstorm Metals & Energy Ltd STTYF



GREY:STTYF - Post by User

Comment by zentrarianNZon Nov 10, 2012 4:09am
391 Views
Post# 20584605

RE: RE: RE: RE: RE: Cash on hand

RE: RE: RE: RE: RE: Cash on hand

Legitimate companies issue warrants for many reasons: To guage investor interest, to raise the company's profile in the market, to reduce costs of issuing new equity, and especially, as a bonus to shareholders willing to invest in a new issue, which is why they are usually offered in conjunction with ordinary shares as a "sweetener." (After which they are often traded separately in the secondary market, which is something the issuing company has no control over.)

One reason they do NOT offer them is rip off shareholders, either those holding shares or those holding warrants to buy shares in the future. Sandstorm did NOT say it "wants" the warrants to expire worthless, and it certainly did not say it would consider withholding material announcements in order to make that happen, which is probably illegal in any case. It simply stated the obvious: It is not in the best interests of the majority of shareholders to do something solely for the benefit of warrant holders, especially something which could undermine investor confidence in the company.

More importantly, if you do not believe - as I do - in the absolute integrity of Sandstorm's management, I would highly recommend you sell not only your warrants but ALL of your ordinary shares - assuming you own any - IMMEDIATELY. Do not pass GO and do not wait for any expiration date, extended or otherwise.

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