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Cline Mining Corporation T.CMK



TSX:CMK - Post by User

Comment by bond46on May 11, 2013 6:59pm
101 Views
Post# 21368481

RE: RE: RE: RE: Should we exercise theRights offer

RE: RE: RE: RE: Should we exercise theRights offer

That is correct. Cline can't force anyone to exercise the Rights, but they will give you the option to buy for every share you own 8 shares at 2cents a share. So if you own 100000 shares x8 =800000 at 2cents each. Which means that you have to come up with $16000, i.e., 800000x0.02=16000 dollars. That is done in order to offset the dilutive effect the stock will undergo after the Marret Plan comes into effect. Now, this money was thought to go to pay off the Marret debt, but now, according to the prelim prospectus this money will go as "working capital' among other things to pay for Bate's salary and the rest  of the gang's. What my point is, let Bates pay for his own salary. Bates, owns 1.8million shares; he is entitled to buy 1.8million shares x 8= 14 million new shares. These shares if mulitiplied by 0.02 = 280000dollars that Bates has to come up and put into the stock. Given that he gets paid $400k/yr(?) he can pay himself a year's salary with his own money. That sounds logical for the kind of work he has been doling. Imagine, he could be a swimming pool guard or even unemployed, so it's not a bad deal. Let him pay his own salary and call himself a CEO, but not with my money.

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