dilemmaSurely the powers that be (friedlands et al) have thought through this strategy and OBVIOUSLY know the potential pitfalls and benefits and the mindset of the investor (big or small) and the outcome and have factored this in to successfully generate the $30m +/_ they need to move this project forward. So no matter what transpires short term with the paranoia generated from the small time "investor", surely they have a motive/strategy thats beneficial for the "company" and hence the shareholders? Robert F has all the experience and knowledge to know wnat it takes to generate wealth for shareholders and to think otherwise at this point would be, I believe, a mistake. He knows the outcome of this financing, he must, its in his blood.
the dilemma is what we. the plebs must do, as unfair as it is to determine what they are planning.
With what is in the public domain, we know what is published/known however there must be a gameplan to not only exercise all rights and warrants to generate the $30m but a plan to move this project forward, however if the plan is to suck as much cash out of the general shareholders as possible and to then go private or consolidate or otherwise then we are surely getting Fkd.
Do you sell your shares and buy the rights? take a chance untill Oct 6th. then fold your hand as the rights trade at zero.
Do you keep your shares, exercise your rights and warrants and double your shares (provided warrant price is less than the share price come April 16th) while not increasing your percentage ownwership (as the Friedlands/Goodman say they will do).
do you buy rights, exercise them and bail the .21 shares after Oct 6th and hold the warrants for a potential gain above .21 prior to April 6th.
it seems the combinations and permutations are all too many with no real win without a "shock and awe" event to drive the price higher after Oct 6th and prior to April 6th. If this event is known, it is material information and should be disseminated now. If it is not known then this is Poker and 6 months is probably not enough time (with what is currently known publicly) to generate new material news that can essentially drive the shareprice to keep this train moving.
It seems there's no way out without either selling at market and cashing in on whats left, or a chance and waiting for the potential inevitable, good or bad, perhaps a force majeure, a "Tahera", a "Dianor", a "Shear", a "Diamonds North", been involved/invested in them all, I hope this is not the next Failure.
We have dropped 50% in two months and now need a 100% gain to just get back to prefinancing/rights shareprice. with the current (and potential warrant) overhang on the horizon, that would be quite the feat in the next 6 months.
Time will tell.
M