Flow-through SharesIn the Q2 financials under note 9 I came across this;
(b) Flow-through Share Issuance
In June 2015, the Corporation issued 1.0 million flow-through shares related to Canadian development expenditures at a price of $4.49 per share for total gross proceeds of $4.5 million, with no insider participation. The implied premium on the flow-through shares of $0.62 per share or $0.6 million was recorded as a flow-through share liability within other long-term obligations. As at June 30, 2015, the Company has incurred $1.4 million of qualifying development expenditures and $0.2 million of the associated premium has been released through the deferred tax recovery. The Corporation is required to have incurred by December 31, 2015, for renouncement to investors on such date, the full $4.5 million on eligible expenditures of which $3.1 million remains at June 30, 2015.
I don’t know what these things are, if they are tradable and who may have bought them.
Is this Good, Bad or a Non-Issue?
Enlightenment would be appreciated.
As Always; Do Your Own Due Diligence, It’s Your Money !!