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Carlisle Goldfields Limited T.CGJ



TSX:CGJ - Post by User

Post by wrightonon Oct 15, 2015 10:17pm
505 Views
Post# 24196495

A perspective on the proposed new warrants

A perspective on the proposed new warrantsIt takes 1/.0942 = 10.62  shares of CGJ to get 1 share of AGI plus 1 warrant. 
The price of a CGJ share closed today at .63, so the value of 10.62 shares = 6.69.
The price of an AGI share today closed at 6.09.
That means the new warrants, to purchase 1 share of AGI at 10, are being valued at .60 each.

Previous warrants, AGI.WT, for purchase of 1 share of AGI at 28.47, and expiring a few months before the new warrants, traded at .20 today, and the share price is a long way from 28.47, so ther appears to me to beat least some optimism regarding AGI's share price.

Assuming a new warrant value of .60 today, a share price of $12 would value a warrant at $2.00, for a profit of $1.40, or 233%.  A share price of $15 would give a profit of 733%.   I suspect many folks would see the new warrants to be a bargain at .60, so the share price for CGJ might rise significantly from .63.  Just an opinion, but fun to think about!
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