15 Million Additional Shares - Los RicosNB.
An additional 15 millions shares over the next gears are going to be
issued to the previous Mexican owners of Los Ricos. The comapny claims
to be saving $5M be issuing these shares instead of the lump sum
payment originaly agreed to.
If the price of GGD goes over $1 over the next two years then the
original owners will be benifitting greatly compared to the original
agreement (if they hold onto their shares and sweat it out like the rest of us).
They stand to make millions more.
Don't overpay for your shares unless there is a good reason to. !5M shares @ 60 cents
works out to $9m which along with the $3.5M cash paid with the new shares makes the new
terms of the deal worse than the old deal.
Hopefully (given the amount of shares to be issued - 15Million) management would be
considerate and inform everybody if these new shares are being dumped or held. They
don't have to but it would be nice since they claim to be saving $5M by restructuring
the Los Ricos deal this way (We would like some of those shares at .60 as well).
We also don't know the details of the current share structure since the BIG placement.
Mr. Sprocket et al may have being aculmulating shares well below the the placement as well.
Beware if you are a short term investor. If you do invest on a short term basis
do not come back here complaining as things can change very fast with penny stocks
Hopefully they can prove up Los Ricos and sell it for a pretty penny.
Look out if they give any hint they are going to try to develope the mine themselves as that is an entirely different matter given the stuggles they had to endure at Parrel.
GLTA