Re Move to 2.00 in the summer The move to 2.00 in the summer I believe was to bail out Hennigh, Levinson and Schmitz out
of their combined options of 1.2 mil that were about to expire(exercise @ 1.00 each) at a bail out price of 1.80 each. A $1.80
per share would represent our 5.0 mil oz of gold valued @ about $50. oz. This was very good for these
3 executives who each Pocketed $320,000 each(400,000 options @ 80 cent profit.) . this was I believe
around Sept 21st. Then 5 weeks later around Oct 25th there was a about 3.5 mil warrants expiring
at an exercise price of 1.25. By then the stock was trading around 1.25 to 1.30 range. We saw
on the insider trading reports that Sheldon and Pinetree exercised their warrants @ 1.25 each( I
beleive they each had 350,000 warrants each). At the time I was wondering if the remaining 2.8 mil
warrants @ 1.25= 3.5 mil potential cash for the company got exercised since the share price was
very close to the exercise price of the warrants.
I got my answer in mid November when GCU Management provided an update on affairs and
activities. In that press release they proudly announced that they had collected just over
4.0 mil in option/warrant money over the summer, but I was expecting about 7.5 mil from this
source, as I was keeping track of options/warrants expiring. After finding out that basically none
of the remaining 1.25 warrants were exercised. , I bailed out on Nov 23rd taking about a 2,500
loss on my position, which in hind site was a good move.
I got back in again in early January starting to build a position, and again more options issued
to managemnt including 250,000 each @ 86 cents for the same 3 executives that got bailed
out on Sept 21st. I wonder how the funds liked that after bailing them out @ 1.80 3 months ago
Whoever bailed them out a now sitting on a combined loss of(1.80-71cents=1.09 per share
times I.2 mil shares= a whopping loss of 1.308 mil dollars. I'm not supprised that some financial
institutions may be bailing. Management needs to think more about the well being of their
shareholders instead of themselves,IMHO.
After yesterday I got my most recent position averaged down to 80 cent range ,which I beleive
a good double (minimum)is in the cards when we do get bought out. Once the PEA is done, we will
quickly need a cooperation agreement with the First Nations signed. Perhaps maybe Mr Moritz
in our next corpoate update can include an update on the (Frybread) negotiations.
Since Scoutaz mendioned the $2.00 SP runup , I thought I would give my thoughts on it
and subsequent events. GLTA