GREY:GPLDF - Post by User
Comment by
rollindiceon Jul 30, 2016 12:51pm
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Post# 25098324
RE:RE:RE:RE:RE:This is a quiz
RE:RE:RE:RE:RE:This is a quizif anyone can explain to me what impact (free warrant for GPR buddies) will have on the "peception of future profits
If the exercise price is set too close to the current share price, shareholders might assign a higher probability that the warrants will ultimately be exercised, resulting in dilution of earnings per share.
If you feel we should be trading at $3 right now, then the excerise price was set too low. Warrants are offered to sweeten the deal to entice investors. Most investors dont fall into the Accredited Investor catagory to take advantage of this. Warrants are the way to go if you fall into this catagory. You blow out your shares you purchased when you break even and hold the warrants with no risk. These GPR warrants are good for 18 months. Where do you think precious metals will be in 18 months? Pretty sweet deal when many believe we have finally bottomed and are now beginning a new bull market in precious metals.
To me this financing has a "air of desperation". Also stating this deal was put together in a 24 hour period is utterly ridiculous.
I will sell just below the strike price and am not losing any sleep about being underwater at the moment. Its just a little frunstrating when you look at share price of other miners you considered.