Option Extension
Let’s see! Happy Creek has 61.1 million shares outstanding. According to the press release below, 1.688 million of those have an option to purchase an additional 1.688 million for $ 0.20 per share by May 21, 2015. Obviously, that is unlikely to occur, at the current share price. If the options were to be exercised, that would bring 1,688,000 x 0.2= $337,600 more into the company’s bank account.
The company says that it “proposes” to extend the expiry date by one year, thereby benefitting the shareholders of those options that are about to expire. Those shareholders get a present that they have no right to expect!
Why should that extension be done to the prejudice of the other 59 million shareholders? If perchance the stock price goes above $0.20, the company could issue a similar number of shares at a higher price.
The company “proposes”. Will they actually follow through? Will the TSX Venture exchange allow it? Or, will the TSX exchange stand up for all shareholders?
PS. I am not being Awarded.
May 12, 2015 - Vancouver, British Columbia - Happy Creek Minerals Ltd. (TSX-V:HPY, the "Company") announces that it proposes to extend the expiry date of 1,668,000 share purchase warrants exercisable to purchase one common share of the Company at an exercise price of $0.20 per share from the expiry date of May 21, 2015 to May 21, 2016. The warrants were issued in May 2014 in connection with a non-brokered private placement financing.
Proceeds from any exercise of warrants will be used to continue to fund exploration activities and for working capital purposes.
The extension of the warrants is subject to TSX Venture Exchange approval.