OTCQX:GTBAF - Post by User
Comment by
Goaweighon Oct 09, 2020 12:03pm
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Post# 31695793
RE:RE:RE:RE:Rights being offer for Great Bear Royalties
RE:RE:RE:RE:Rights being offer for Great Bear RoyaltiesWe also have the right to request to purchase additional stock , the stock that isn't taken up by others, and I suspect plenty of people will do that so the likelyhood of the 3 directors scooping up millions of shares is remote. I'll be surprised if they get any more than their original allotment allows plus some tiny amount of the stock not spoken for . The current shareholders might be fighting over a few hundred thousand shares at best, could be the largest over subscription in history !
lumpy13 wrote: When we initially received GBRC shares, it was a spin-out of a 2% royalty to existing shareholders. Now they want to issue an equivalent number of shares to raise C$2m for corporate purposes for GRBC:
There are currently 13,646,290 Common Shares of GBRC outstanding. If all of the Rights issued under the Rights Offering are validly exercised (or if the Standby Commitment described below is fulfilled), the Rights Offering will raise gross proceeds of approximately $2,000,000. GBRC intends to use the net proceeds of the Rights Offering for potential listing costs and general corporate and working capital purposes, as more particularly described in the Company's Rights Offering circular.
If you don't subscribe, you'll be effectively diluted 50%. Unfortunately, there is not a market for unsubscribed rights, rather a lucky 3 insiders will pick up all unsubscribed rights. Prior to the GRBC shares being issued, I made a rough calculation that they were worth around $2/shares. I would probably double that valuation now, given how the project has progressed and the rising price of gold. Once the GRBC shares become tradeable they'll be in high demand by royalty companies, which given the way they are valued, would be willing to pay 2-3x more. Hence, it's not unrealistic to think GRBC shares will be worth $10+, or $5+ after the new righs are issued. All-in-all, a nice kicker for those holding GRBC shares.
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