GREY:ELGMF - Post by User
Comment by
professon Aug 05, 2014 3:39pm
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Post# 22811080
RE:$ 5000,000 /17 cents= 29,411,764.7 new shares
RE:$ 5000,000 /17 cents= 29,411,764.7 new sharespecorina I believe the share purchase price is 15.7 cents not 17.
I agree that Mandalay is milking this deal for all it's worth. Excessive dilution is not what any Elgin shareholder wants to see - especially at deeply discounted prices. Essentially Elgin is handing over ~15% of their company (in stock) for consideration of the $5 million loan. Elgin could have done a lot better going to the bank for the money, but something tells me this incentive was necessary to get the deal done. At least we can somewhat partake in the windfall by converting Elgin shares over to Mandalay for as much as we are allotted..I see MND is breaking into new highs as this deal comes to fruition.