OTCPK:MEAOD - Post by User
Post by
JRaffleson Nov 10, 2013 12:54pm
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Post# 21892557
Share Dilution
Share Dilution
There will be a 10.4m (3.6%) reduction in diluted share capital next month, from 290m to 280m.
The 10.4m warrants, issued in 2011 and exercisable at $0.40 will then be out of the money.
At the start of 2011, when the Sandstorm $20m agreement was approved, the SP was $0.45. It is likely that the 2 year warrants then issued at $0.40 were regarded as a give away, as it may have been anticipated that commercial production would have been achieved by December 2013.
Gold was at $1388 at the start of 2011.
Therefore, a 66% SP reduction since the start of 2011 and commercial production closing in, the risk / reward now seems to be far better now than when the warrants were issed.