RE:RE:SADWell all I can say is learning about how these financings work is an education by
itself. In order to get a financing, certain criterion must be met but also you need
to incentivize the banker or lending institution with perks. The perks are the unit
deals with warrants attached
That all sounds great on the surface because the company gets their money. Great
except it is not exactly free as it sounds. The institutions then make their profit by
selling the stock and in many cases even shorting the stock beforehand. Then they make double on the deal. They make money on their short sale by covering once the stock has dropped, (look at the chart on WRLG) and then cover after it has dropped thereby closing out their position.
Ok so where's the the other half of their profits. Its the free warrants that come attached. After selling short the stock and getting their investment money back, then they can sit on their free warrants until they realize a capital gain. Nice eh. Unless
you have specific knowledge of how these deals work and what the consequences
are, it can seem very confusing as to what is actually going on and why. I know when I was new to investing, I had no idea and assumed it was all great when a company got financed. I hope this helps to enlighten this topic for you and others.
As a final comment, if the project is a good one, with time it should be able to overcome this setback. I think it will but with any mining venture, there is risk
and no guarantees.