Four months and one day Question Sorry, CashFlow, I missed your question. You must be referrign to this:
"Each Unit consists of one common share of the Company and one share purchase warrant (a “Warrant”) exercisable for three years at a price of C$0.05 per share. The Company may, at its option, accelerate the expiry date of the Warrants, provided that closing price of the common shares is at or above C$0.15 per share for any 20 consecutive trading day period at any time after four months and one day after the issuance of the Warrants"
I would say great alignment of interests. Similar to last deal that didn't work out. But all those warrants expired and that was just punishment in my eyes. Now it's take too. EVERYBODY loses as I see it. Nobody wins unless WE win. At leats if you were to take advantage of the ask as it stands today. I think they are all in a .008 on the American exchange, and insiders had to pay a premium to that. So insiders get paid last. Good alignemtn of interests, but that doesn't mean they get my blessing like the first time around because they blew it first time. Actually, the second time because it was an energy company of sorts before that. It is beyond infurtiating!
But now, anything above 5 cents means no incentive for any investors in on this deal to stick around as I see it. Because they can always exercise at 5 before expiration as a nice kicker, or they can buy back in below 5 at expiration. No downside to them as I see it, so I'm not going to hold past 5. Unless it's just shooting up at that time, but I would just say watch yhour back at .05.
And this part is a sweet deal too:
"The Company may, at its option, accelerate the expiry date of the Warrants, provided that closing price of the common shares is at or above C$0.15 per share for any 20 consecutive trading day period at any time after four months and one day after the issuance of the Warrants"
So, it might actually behoove them not to get a stock promoter for another 4 months. Sigh. That's sooo irritating. But, that makes the runway shorter too. I think they are under the gun to do something. Self-imposed guns to the head. That's a great incentive. Basically, if it trades over 15 cents for 3/4 of a month, they can force the exercise to my understanding at 5 cents. Which is still great for anyone that holds the warrants because if it was trading that high over 20 days, it should have the liquidity to support them if they choose to sell their converted shares at 5 cents.
What it basically does is ensrue the company gets massive funding at 5 cents. Because that exercise price needs to be executed with funds which goes straight to the company and would really give them 5 times more than what they already raised. Whcih I guess is about $20 million. They could do a lot with that, so it would be int heir best interests, and a good way to fund raise, to get the stock UP!!! Like WAY UP. Between preferably for them I owuld think between 4 months when that clause comes to fruition for them, and another 6 months or so remainign before they run out of cash at their current burn rate. Or maybe longer if they can start MAKING MONEY.
So, yes, all good! I like it. I'm SOOO READY for this show to start. That's my interepreation and undrestanding of it anyway.