EXPM:HRTFF - Post by User
Comment by
MudCreekeron Mar 31, 2021 11:05am
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Post# 32913837
RE:RE:RE:RE:RE:New Gold deal
RE:RE:RE:RE:RE:New Gold dealballot123 wrote: Mudcreeker, what's the old saw? Pigs get fat. Hogs get slaughtered. Do I assume the warrants are at bargain prices? If so how does that pass the test of fairness?
The warrants are actually priced higher than the pp. Not much - $.18 vs $.16 - but higher at least. I'm no expert and really don't have a clue what a fair price would be. I mean, Appian had the right to buy those shres at $.16, and might pay $.18 instead. That doesn't seem outrageous to me.
Another interesting point that seems a bit unusual to me is that Appian can't exercise the warrants for a year, and they expire in 15 months. So they have to be exercised between March 24th and June 24, 2022, or not at all. That would add about $10 milion to Harte's coffers at a time when the inevitable cost over-runs from the 1200tpd expansion will have to be addressed. ($11 million if New Gold also exercises).