Post by
justanormalguy on Mar 12, 2015 4:29pm
Pre April 6 Speculation - Best, Middle and Worst Cases
You guys beat me to this today. My most important questions/comments at this point in time are at the bottom. All speculation.
What was the Board of Directors (BOD) plan up to this date? Let's for simplicity call this Plan A. Does the BOD have a Plan B, and for that matter, a Plan C? The BOD has fidicuary duty to ALL shareholders to act in its best interest. Was, is, will the BOD create wealth for the shareholders and how do they plan on doing this going forward? Is it going according to plan, or has the plan changed, which is ok too. Stuff changes.
BEST CASE
- Big 3 disclose exercise of warrants
- Additional details about Spinco are provided
- PGD receives non-ginding LOI for JV or partnership, and discloses share value (ie purchase price), for board consideration
- Large institutional investor sees value and buys a lot, driving the price
- Share price rises
- Most if not all warrants are exercised, fully funded for 2015
MIDDLE CASE
- Big 3 disclose exercise of warrants
- Additional details about Spinco are provided or not provided
- Share price hovers around 21 cents, +/- 4 cents
- Institutional investor may or may not invest
- Warrants, may or may not be exercised, mostly funded for 2015
WORST CASE (uncertainty)
- No news released
- Big 3 do not exercise warrants
- No details disclosed on Spinco
- No institutional investor
- Share price below 21 cents
- Warrants are not exercised, therefore no additional 2015 funding
Q. Has the BOD considered all cases (and have you?), and do they have a plan pre April 6 (and do you?). The plan so far has not put the price above 21 cents so far and news has been very good, did the BOD expect this as of today's date.
C. The BOD of Directors CAN ask for approval to a) extend the exercise date of the warrants and/or b) revise the exercise price
Comment by
mill44 on Mar 12, 2015 4:52pm
There was/is very little they could do to keep the price above 21c. Even if it went up to 30c, the market would make sure that on Apr 6 it would finish at or close to 21c. The good part is that the decision makers were the very same people who are supposed to buy the shares.You and I have to decide if we want to buy at 21c, they had to decide at what price would they buy. Big difference.