RE:RE:RE:Warrants
Givemebackmymoni. Reread the announcement. Close to 10 million units were sold at 66 cents each. Each unit contained 1 share and 1 whole transferable warrant. Warrants can be traded as well as the shares. PP purchasers can swap their warrants for shares anytime for up to 2 years by giving the company 80 cents for each warrant converted to a share. If you bought 100,000 units of the pp you paid $66,000.00. If the shares are trading at... say $10 any time in the next 24 months from now, pp purchasers can give the company $80,000 ( 80 cents each ) and the company will give them 100,000 more shares worth $10 each or $1 million. The downsides to retail are: 1- we will have added/placed 20 million more shares in circulation. 2- many purchasers of the 66 cent pp will dump their shares as soon as they can. They will get all their money back and just hang onto their warrants for up to 2 years and see how the drilling and share price goes. After selling their shares they have absolutely no risk or money in the game. They can sell their shares anytime they want. 3- Normally...almost all pp raises have a 4 month hold or freeze built in so they can't dump their stock the next day and just ride the warrants. Some avn purchasers will sell asap at .55-.60 cents and see what the next 2 years bring. The last pp had that 4 month hold and no warrants attached which was much better. This is a sweet deal for Raymond James etc but not for you and I who paid much more believing the pp was going to be done at 90 cents and was over subscribed according to Bruce from Stonecastle. My take only, do what you are happy with.