Money on the way???Now that I am back in town I thought the below may be of interest. This is regarding the NR put out earlier.
There are two possible ways to interpret paragraph 3 (about issuing 15 million options) the NR and I would choose to say to the management...
CONGRATULATIONS on having the $ 3 million dollars committed and most likely the $ 1.4 million settlement of debt. It is not exactly a surprise hence the NR last Monday. I look forward to the closing of the financing so the ball can start rolling.
Okay, hopefully I have not thrown everybody off too much by my above statement. My reasons for viewing the NR this way are as follows:
1. There are 194,427,483 shares outstanding as of 15 Dec. 2003.
2. There are currently 12,100,000 options (@ .10) that have been issued(authorized in the past) which expire on Jan. 10th 2007. I believe Chuck also holds 1,124,036 securities under options granted?. (I don't know if these are part of the above 12,100,000 though or are they shares?).
CD currently has in place the "rolling" stock option plan as again passed at the last AGM, for a maximum of 10% of the issued and outstanding shares be reserved at any time for issuance on the exercise of stock options.
3. So the 12,100,000 plus the 15,000,000 new options proposed in the NR = 27,100,000 options. This is way over the current number of outstanding shares. So either the NR was trying to give us a hint that the closing of the financing was just a formality and there will be 282,427,487 shares outstanding, thus allowing the total number of new options to be issued; or there was a slight error in the amount of options to be issued or this paragraph should have included a line saying this would happen if the financing was completed.
Regardless of the interpretation of paragraph 3 from the NR, "The company intends to issue up to 15 million options. The options will give the holder the right to acquire one common share in the company at five cents per share for a period of five years. " the newly released proxy for the upcoming AGM for the vote to allow for the 10% rule for options will be voted in favour.IMO.
Cheers.