RE:Big Shareholders Add SchiffKnowsBest wrote: And what will retail do???? Likely tapped-out or scared and thus big shareholders will add not only the share but also the warrant which is as good as cash and the rest of the shareholders will be diluted. Funny isn't it just how confident the big shareholders are don't you think? No hesitation and boom fully booked their portion.
What will retail do? Those who want to be as confident as big investors have to act same way, like visit the mine site from time to time, talk to the management and BOD regularly , etc. I'm sure those " big three" knew long time ago about status of things. And, in fact, there were indications available to us, retail guys, as well. Like April 25 preliminary base shelf prospectus with the intention to raise up to $100M in equity. They did same thing in December last year. I don't understand the mechanics of it but those two releases were an " early Warning " which many of us, including myself just ignored. Now if one doesn't want to get their position diluted they have an option to exercise the Rights and get shares along with warrants. That's, kinda simple dilemma: don't want to get diluted - pay the money and, as you put it, book your portion, along with the big guys. Don't want to risk more money in this circus, - fine, don't put a dime more. But get ready to be diluted. Because the third potential outcome , when there's no need to pay more and, at the same time there will be no dilution , is the case when the company has the money to last for one month . There will be no dilution in this case, just whatever value remains in common shares will be flushed down the toilet. My estimate is, based on trading volume , there was no mass exodus. To compare, Eldorado Gold, with 716M SO, had a day in June when 52M shares were sold and the majority at the close of trading. That's 7% in one day. We had around 16M traded in 5 days , that's around 6%. With some money the company has a chance to fix their mistakes. It's a tough choice, no doubt. But everyone has to make it for themselves. I'm working on mine, haven't decided yet, but most likely part will exercise.