Post by
Nikolai on Nov 12, 2008 11:00pm
AGM, R/S and Brazil update....
Thanks for catching the correct AGM date, Donny. I misread the original notice on SEDAR.
Pardon the following but this just doesn't look like the right approach.
The R/S is being proposed at the worst possible time -- just before drilling Rio, seeing stabilization of the mining situation in Ecuador and long-overdue rebound in the metals. Why can't the company just wait this out with emphasis on drilling the highest value target in Ecuador? Shrinking the share structure at this juncuture looks like a setup for a PP ahead of bonanza results.
Repricing the stock options by any amount, let alone by more than 50% seems way inappropriate. There is still plenty of time for the holders of these options to realize value, or not. That's supposed to be the risk associated with options. It's a shame to see vulture exchange companies do this over and over.
Consolidate shares while dropping she strike price on the options, then crank up the dilution machine with a PP. Sounds like a plan, just not one with shareholders in mind.
There was another Brazil update on November 7 which expanded a bit on the earlier ruling, but the company did not elaborate on how this impacts their timetable.
Comment by
donny2 on Nov 13, 2008 7:40am
Nikolai- I could not agree with you more. Option grants to Directors should have, at the minimum, some relationship to the performance of the company. Yes, I know that Directors receive little for their service. But, given how poorly Ecometals communicates with shareholders, how little we know of company strategy, and how dismal share price has become, re-pricing option grants is wrong.