RE:At the end of the dayReading the news release over...
When CRE starts their tab with the 1.5 M 'initial drawdown' (loan), they will issue common shares at .77c per share.
Usually when I see other companies give warrants, it is typically less than the current stock price and as a result the stock price usually gets close to that warrant price issued on TSX-V as well.
In our case, the warrant is more than the current stock price. I expect the stock price to reach or atleast close the gap towards the .77c per share mark. I just dont know when that will be realized exactly.
As I said, usually the warrants are less than the current share price, giving the high net worth investor a good deal, but looks like even .77c per share, CRE and Helm agree to consider .77c per share is a good deal.
This is really good news that I think long term investors are taking for granted. Sure the stock price didnt pop but what we have read today is the foundation of CRE becoming even stronger and broader. This news release I consider to de-risk this stock significantly as now we know who is buying everything coming out of Rose and their role in helping CRE to get there financially, commercially, and tactically. Of course the Feasibility Study and the 60 day period Helm has to purchase 25% of the company is another big milestone and would be even better news, but for now we can feel reassured of our decision to go forward and hold on CRE.