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Peregrine Diamonds Ltd. PGDIF

"Peregrine Diamonds Ltd is a diamond exploration and development company with interests in diamond exploration properties located at Nunavut and the Northwest Territories in Canada and The Republic of Botswana."


GREY:PGDIF - Post by User

Comment by peachbananaon Apr 16, 2015 7:04pm
150 Views
Post# 23638465

RE:RE:RE:RE:RE:Does the recent runup

RE:RE:RE:RE:RE:Does the recent runupHm. So after poking around for a bit, I have two observations.

1. According to the report, Robert Friedland exercised 16,567,279 warrants, and then bought and exercised 8,893,495 more. But he had MORE than 16,567,279 warrants to begin with. Why did he buy and exercise another 8,893,495 shares?

My guess is that it was part of some clever scheme to keep at least 50% of the shares under familiar control. But if I've got these numbers right, Dundee and the Friedlands don't actually have control at present.

The total number of outstanding shares is 282,663,598 [= 215,764,791 (as of October 8, 2014) + 10,441,189 (private placement) + 56,457,618 (warrants exercised)].

Eric Friedland has 47,496,436 shares (as of April 1, 2015) or 16.87%..
Robert Friedland has 68,727,195 shares (as of April 6, 2015) or 24.31%.
Dundee has 13,650,000 shares (as of October 30, 2014 or 4.83%.
Together that forms 46.02% -- not enough for control.
 
Eric also has 11,400,000 options. That's another 4.03% if they come out of the shares outstanding, adding up to 50.05%. BUT if the options give rise to new shares, then on a full exercise, 294,063,598 shares would exist, and the sum of EF's shares, EF's options, RF's shares, and Dundee's shares (141,469,631) would total only 48.12% of the new total.

2. Dundee is no longer a reporting entity. (It no longer owns more than 10%.) So there's a possibility that maybe Dundee and the Friedlands do have control and we just can't see it. There's also the possibility that it's in fact Dundee that is buying up shares -- to solve the predicament above, if it does in fact exist and I didn't miss a key insider block of shares. (Would anyone care to check?)

But the original possibility I was contemplating remains: Dundee and the Friedlands don't have control, and someone is quietly trying to exploit that (by siddling up to 10% and then making a tender offer for another 40% of the shares). Remote possibility, I admit, but an exciting one. I wonder what price us minority shareholders would sell out at.

That's all.
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