RE:RE:RE:Waterton now owns 10% of Klondex
In this fairy tale turned bad some of us are prone to magical thinking: Waterton will rescue the damsel in distress (Mr Huet) from the dragon (annual shareholder meeting).
The fact is someone with a very large stake decided it was better sell than hold. Waterton a place in line so the shares would not be dumped in one or two trading sessions tanking the share price. Of course, in order to entice them they had to get free warrants with a 15yr expiration.
Anyone here including myself would agree to buy shares at 1.83 with the free warrants. In all likelihood waterton will unload the shares over the next month and keep the warrants as a free gift courtesy of existing shareholders. So instead of a sharp gap down we will witness a slow descent.
Hang on until mid – march. Maybe a positive surprise like the departure of Huet and other Board Members will offset removal from TSX. Best of luck to all.