Somebody wants out. Over 1.8 million traded today.Do they just hate the deal? Or are they afraid the deal will fall through?
Perhaps SGNL shareholders do vote against it. And perhaps they will get a better offer as DDD suggests. But maybe they won't get a better offer.
But at least initially, there will be a lot of people bailing. Likely many of the 20 plus million shares bought shares in the last month. At least.
SGNL will not get that money that they just raised.
I encourage you to email the company. They were quick to reply.
Ask about the future of SGNL if this doesn't go through.
Ask about the convenants... the required cash to maintain the terms of the credit facility. Ask about the required working capital required.
Ask how long they will be able to continue to meet the covenants, and what happens if they fail to maintain them.
Their financial situation is public information. That last report was for the period ended June 30.
Since then they have drilled for almost all of July.
The legal fees in setting up this "merger" could certainly not have been cheap.
Management and administration fees over the last 4.5 months. Etc etc.
New financials for the period ended Sept 30 are due the end of the month. They just received $570 000 in cash, and 2.5 million in shares of Firefly which they can sell.
It is my expectation that they sold their shares of MAE back in Aug.
If this gets voted down... well... I will be selling immediately.
Here is the current market depth on the tsx. (this does not include the many shares that don't show up... shares sold on other exchanges etc.) Often what you see on the tsx is only the tip of the iceberg for what is actually for sale.
| SIGNAL GOLD INC. (CA:SGNL) |
| Size | Bid | Ask | Size |
| 716000 | 0.075 | 0.080 | 542000 |
| 633000 | 0.070 | 0.085 | 672000 |
| 9000 | 0.065 | 0.090 | 409000 |
| 3000 | 0.060 | 0.095 | 328000 |
| 1000 | 0.055 | 0.100 | 446000 |
Good luck in your voting decisions. Hopefully you make the right one. If it's gets voted down, hopefully a better offer comes. Otherwise it's in trouble.
IF you vote for the "merger", hopefully the combined company will be able to significantly increase it's value.