VMS VENTURES INC. VMSTF

RE:RE:RE:RE:RE:5.4 Million

[LongonZinc]

I just don't like the math...we are getting 23.5 cents per common share (after the 6% fee), and buying NAN at 33-cents. If you assume 100% of the cash from common shares is spent on NAN shares and then add the new FT shares to the float, and assume all warrants are excersised you actually are diluting the current shareholders interest in NAN- currently each VMS share includes 0.259 shares of NAN, post deal it becomes 0.258.  The only way they are able to increase VMS shareholders leverage is pulling another $657,800 from the treasury.  Post deal each share of VMS includes the equivalent of .273 shares of NAN.

But remember VMS is still sitting on 5.88 million warrants exercisable at 0.21, they expire in less than a year, it will take another 1.24 million to convert the warrants.  I think it will take yet another placement to raise funds for this.  They could have increased shareholders leverage to NAN without diluting VMS to 0.283 by spending the same amount of money from the treasury by exercising the warrants.  The only people this deal is good for are the insiders buying shares at a significant discount to the market price unless they can significantly raise the shareprice prior to the next PP.