2016 Warrants - Any Thoughts on these- 3,932,425 warrants ?Euro Sun Mining Inc. (TSX:ESM) (“Euro Sun” or the “Company”) announces that it has received approval from the Toronto Stock Exchange (the “TSX”) to extend the expiry date of the 3,932,425 outstanding common share purchase warrants (“Warrants”) that were originally issued by the Company on May 19, 2016. Each Warrant is currently exercisable to acquire one common share of the Company (a “Common Share”) at a price of $2.18 per Common Share until November 19, 2018; provided that, in the event that the trading price of the Common Shares on the TSX exceeds $2.72 for a period of 20 consecutive trading days, the Company has the right (but not the obligation) to accelerate the expiry date of the Warrants to a date which is not less than 30 days after the date on which the Company gives notice of such accelerated expiry date to the holders of the Warrants.
Effective November 5, 2018, the expiry date of the Warrants will be extended by six months to May 19, 2019, subject to the accelerated expiry noted above.
None of the Warrants are held by insiders of the Company.
These are held by Sulliden, BKI and F &M- Are these considered outsiders or Insiders?
From 2016 Q4 Financials of ESM
On May 9, 2016, the Company announced that it agreed to a private placement into the Company whereby Forbes & Manhattan Resources Inc. (“Forbes”) and its associated entities will subscribe to a private placement (the “Forbes Private Placement”) of units (the “Units”) for a minimum amount of ten million dollars (CAD$10,000,000) to advance its Rovina Valley Project in Romania. On May 19, 2016, the Company closed the Forbes Private Placement whereby Forbes, Sulliden Mining Capital Inc. and Black Iron Inc. subscribed for 7,864,850 Units at a subscription price of CAD$1.27 per Unit for aggregate gross proceeds of $7,630,675 (CAD$10,000,000). Each Unit consists of one (1) common share of the Company ("Common Share") and one-half (0.5) of a common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire one (1) Common Share at a price of CAD$2.18 for a period of two (2) years from the date of issuance. However, the Warrant exercise period may be accelerated if after the date that is 4 months and a day following the closing, the Common Shares trade at a price above CAD$2.72 for a period of 20 consecutive trading days. The value of the Warrants was determined to be $2,507,222 using the Black-Scholes valuation model with the following assumptions: exercise price of CAD$2.18, risk-free rate of 0.61%, expected volatility of 382%, an expected life of two years and an expected dividend yield of 0%. The Company incurred total transaction costs of $496,929 of which $333,657 was allocated to share capital with the remaining allocated to warrants. The Company issued 471,891 broker warrants to Origin Merchant Securities Inc. in connection with the Forbes Private Placement. The value of the broker warrants was determined to be $422,086 using Black-Scholes valuation model with the following assumptions: exercise price of CAD$1.27, risk-free rate of 0.61%, expected volatility of 382%, an expected life of two years and an expected dividend yield of 0%. $283,401 of the value of the broker warrants was allocated to share capital with the remaining allocated to warrants.